AMD Earnings Preview: Analysts Expect Strong Growth Ahead

AMD's stock closed at $94.50, up 1.18%. With EPS forecasted at $0.93, a 50% increase, investors are eager for upcoming earnings on May 6, 2025, amidst a challenging month for the stock.

Date: 15-04-2025

AI Rating: 7

**Earnings Insight**: Advanced Micro Devices (AMD) is projected to report Earnings Per Share (EPS) of $0.93, indicating a remarkable 50% increase relative to the previous year’s quarter. This strong growth in EPS reflects positively on the company's profitability, and if achieved, could boost investor confidence and drive stock prices upward.

**Revenue Growth**: The company anticipates revenue of $7.12 billion, marking a 30.11% increase from the same period last year. Such significant revenue growth showcases AMD's ability to capture market demand and expand its business, a vital sign for potential investors.

**Long-term Outlook**: For the full fiscal year, AMD estimates an EPS of $4.59 and revenue of $31.72 billion. The respective year-over-year increases of 38.67% for EPS and 23.02% for revenue further reinforce the company's positive momentum in the industry.

**Analyst Sentiment**: The recent 0.08% decline in Zacks Consensus EPS estimate may signal some caution among analysts. However, the overall Zacks Rank of #3 (Hold) suggests a stable outlook with mixed sentiments towards AMD's near-term performance.

**Valuation Considerations**: The Forward P/E ratio of 20.36 reflects a premium over the industry's average Forward P/E of 11.2, which suggests that the stock may be overvalued relative to its peers. However, the PEG ratio of 0.79 indicates that AMD's growth potential is being undervalued, making it an attractive consideration for growth-oriented investors.

**Industry Context**: With a Zacks Industry Rank of 158, placing it in the bottom 37% of industries, AMD's performance is within a challenging sector. This context reinforces the importance of closely monitoring both AMD’s results and broader industry dynamics as they have the power to influence stock performance considerably.

Stocks: AMD