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AMD's Earnings Forecast Amid Export Restrictions Challenges

Advanced Micro Devices, Inc. is set to report Q1 earnings this May. With projections indicating a significant year-over-year EPS increase of 74.4%, investors are analyzing how recent U.S. export restrictions may affect AMD's growth trajectory and stock price.

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AI Rating:   6
Earnings Per Share (EPS): Advanced Micro Devices (AMD) is projected to report Q1 earnings of $0.75, demonstrating a substantial increase of 74.4% from $0.43 in the same period last year. For the full fiscal year, EPS expectations are set at $3.87, which is 47.7% higher than the previous year, indicating strong financial performance.
Revenue Growth: AMD's reported revenue growth of 24.2% year-over-year, reaching a record $7.7 billion in Q4, exceeded estimates and reflected robust demand, especially in the data center and client segments.
Export Restrictions Impact: Despite positive earnings outlooks, the recent announcement of U.S. export restrictions on some AI processors has introduced near-term risk. This could result in an inventory loss of approximately $800 million, signaling potential cash flow challenges.
The combination of expected higher EPS and revenue growth coupled with export challenges presents a mixed outlook. Therefore, while the strong earnings forecast could initially boost stock prices, ongoing geopolitical and regulatory factors could limit growth and lead to volatility in AMD's stock performance.
Stocks:  AMD