Advanced Micro Devices (AMD), a semiconductor company, will release its Q4 financials today. AMD stock has dropped over 34% in the past year, primarily due to rising competition from Nvidia (NVDA), a weak gaming segment, and disappointing Q4 guidance. However, Wall Street analysts expect the company to report earnings of $1.08 per share, representing a 40% increase year-over-year.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Meanwhile, revenues are expected to grow by 22% from the year-ago quarter to $7.53 billion, according to data from the TipRanks Forecast page. Notably, Advanced Micro missed EPS estimates only thrice out of the last nine quarters.
Analysts’ Views on AMD Ahead of Q4 Results
Ahead of Advanced Micro’s Q4 results, analysts are split on the stock’s outlook. Among the bullish analysts, John Vinh of KeyBanc kept a Buy rating on AMD. However, he lowered the price target to $150 from $220, as he noted that the demand for AMD’s MI325 GPUs has been disappointing.
While Vinh anticipates lower data center GPU revenues in 2025, he sees the current challenges as temporary and remains optimistic about AMD’s long-term growth potential.
On the contrary, Melius Research analyst Ben Reitzes downgraded AMD stock to Hold from Buy and decreased the price target to $129 from $160. Reitzes downgraded AMD due to concerns about its x86 server and PC businesses and the overall long-term position of the chipmaker. He is also concerned about the rising competition from Nvidia’s Arm-based CPUs.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 10.40% move in either direction.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMD stock based on 15 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. The average AMD price target of $160.39 per share implies 40.36% upside potential.
