The upcoming report from Advanced Micro Devices (AMD) is expected to reveal quarterly earnings of $0.93 per share, indicating an increase of 50% compared to the year-ago period. Analysts forecast revenues of $7.12 billion, representing an increase of 30.1% year over year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. An ...

*Stock prices used were from the trading day of April 29, 2025. The video was published on May 1, 2025. In this video, I will cover recent updates regarding Advanced Micro Devices (AMD 1.63%). Watch the short video to learn more, consider subscribing, and click the special offer link below. ...

Core Viewpoint - Advanced Micro Devices (AMD) stock is seen as a strong buy ahead of its earnings release, having retraced 100% of the AI-induced bubble and trading at deep value levels, presenting a favorable entry point for investors [3][6][7]. Group 1: Stock Performance and Valuation - AMD's stock price is currently at $97.35, with a P/E ratio of 98.33 and a price target of $139.57, indicating potential upside [3]. - The stock has retraced to levels below the AI bubble launch point from April, suggesting no premium for recent developments [3]. - Valuation metrics indicate that AMD is fairly valued relative to the S&P at approximately 22x current-year earnings forecasts, which is considered value pricing compared to its growth outlook [10]. Group 2: Growth Prospects - AMD is expected to grow earnings at a high-teens pace in 2024, with growth anticipated to accelerate sequentially and maintain a high but slowing double-digit pace over the next decade [11]. - Analysts have reset their revenue and earnings growth expectations, but the consensus is viewed as too low, with a potential for a 45% upside in stock price [9]. Group 3: Market Position and Competitive Landscape - AMD remains a leading player in the AI data center semiconductor industry, experiencing robust demand despite not matching NVIDIA's revenue surge [4][5]. - The company has lost market share to NVIDIA but has opportunities to regain and grow its share through performance and cost advantages, as well as strategic alliances like the one with Rapt.ai [12][13]. Group 4: Technical Indicators - Technical indicators suggest a strong entry signal for AMD, with high volume support at low trading levels and potential for a bullish crossover in MACD before the earnings release [6][9].

Advanced Micro Devices (AMD 1.46%) investors are having a forgettable year so far as shares of the chipmaker have pulled back by more than 20% in 2025 as of this writing. However, there is a good chance that the company's fortunes could turn around for the better once it releases its first-quarter 2025 results after the market closes on May 6.It is worth noting that AMD's financial performance has been picking up momentum in recent quarters, thanks to its data center and client processor businesses. A simil ...

Core Viewpoint - The semiconductor sector, particularly companies like AMD and Nvidia, is experiencing volatility due to tariff-related economic uncertainties, but recent developments suggest a potential recovery for these stocks in 2025 [1][2]. Group 1: Market Performance and Economic Context - The PHLX Semiconductor Sector index has declined over 14% this year due to tariff-related economic uncertainties and fears of a global recession [1]. - Shares of AMD and Nvidia have both decreased by nearly 20% in 2025, but recent tariff developments indicate a possible rebound for these semiconductor stocks [2]. Group 2: AMD's Growth Prospects - AMD's revenue from data center chip sales surged 69% year over year in Q4 2024, reaching $3.9 billion, driven by increased sales of data center graphics cards and server processors [5]. - The deployment of AMD's MI300X AI accelerators has expanded with major cloud partners, and the company plans to launch its MI350 AI chips in mid-2025, which could further enhance its data center revenue [6][7]. - AMD's client processor business also saw a 58% year-over-year revenue increase in Q4 2024, attributed to strong demand for Ryzen processors, with the company achieving over 70% market share at several major retailers [8][9]. Group 3: Nvidia's Market Position - Nvidia reported a remarkable 114% increase in revenue for fiscal 2025, totaling $130.5 billion, with a projected revenue of $43 billion for the current quarter, indicating a potential 65% growth [12]. - Nvidia controls approximately 90% of the data center GPU market, leading to a 93% growth in its data center revenue in the last reported quarter [13]. - The AI chip market is expected to grow significantly, with Nvidia's data center revenue indicating substantial growth potential in this space [14]. Group 4: Comparative Analysis of AMD and Nvidia - AMD is projected to experience a 33% earnings increase in 2025, with a further 36% growth expected in 2026, supported by its diversified business model [17][18]. - Nvidia's earnings growth is anticipated to slow to 28% in the next fiscal year due to increasing competition in the AI chip market [17]. - AMD's PEG ratio of 0.44 suggests it is undervalued compared to Nvidia's PEG ratio of 1.57, indicating that AMD may be the more attractive growth stock at this time [18][19].

Core Insights - AMD's upcoming earnings report is expected to provide clarity on the effects of tariff uncertainty and the potential trajectory of AI revenue [1] Group 1 - AMD management ceased to break down AI revenue figures in the last earnings report, indicating a shift in reporting strategy [1]

Group 1 - The article discusses Advanced Micro Devices, Inc. (NASDAQ: AMD) and highlights a previous coverage dated March 11, 2025, which presented a GARP (Growth at a Reasonable Price) investment opportunity with a rating upgrade for the stock [1] - The core investment style of the research is to provide actionable and clear ideas based on independent research, appealing to investors who share this approach [1] - The company has a track record of helping its members outperform the S&P 500 and avoid significant losses during periods of high volatility in both equity and bond markets [2]

Company Performance - Advanced Micro Devices (AMD) ended the recent trading session at $96.39, showing a -0.26% change from the previous day's closing price, which lagged behind the S&P 500's 0.06% gain [1] - Over the past month, AMD shares have decreased by 6.37%, underperforming the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% [1] Upcoming Earnings Report - AMD is scheduled to release its earnings on May 6, 2025, with a forecasted EPS of $0.93, indicating a 50% increase from the same quarter last year [2] - The consensus estimate projects revenue of $7.12 billion, reflecting a 30.11% rise from the equivalent quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $4.41 per share and revenue of $31.37 billion, representing increases of +33.23% and +21.68% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for AMD are important as they indicate changing near-term business trends, with positive changes suggesting a favorable outlook on the company's health and profitability [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [6] - Currently, AMD holds a Zacks Rank of 3 (Hold), with a 3.6% decrease in the consensus EPS estimate over the last 30 days [6] Valuation Metrics - AMD has a Forward P/E ratio of 21.9, which is higher than the industry average of 12.17, indicating that AMD is trading at a premium [7] - The company has a PEG ratio of 0.9, compared to the Computer - Integrated Systems industry's average PEG ratio of 1.54, suggesting a more favorable valuation relative to expected earnings growth [8] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 160, placing it in the bottom 36% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Advanced Micro Devices Inc. (AMD) is positioned as a competitive player in the semiconductor industry, particularly in the context of its rivalry with Nvidia Corp, despite Nvidia's prominence in AI technology [1] Group 1: Valuation and Investment Appeal - AMD stock is trading at a revenue multiple of six times, significantly lower than Nvidia's over 20 times, making it potentially more attractive for investors seeking value [2] - Recent bullish transactions in AMD options, particularly long-expiry call options, indicate strong confidence from traders in AMD's future performance [3][4] Group 2: Political and Market Challenges - Political dynamics, particularly U.S. government restrictions on AI chip exports to China, pose significant risks to AMD's growth and market enthusiasm [5] - The uncertainty surrounding tariff exemptions and negotiations adds to the challenges faced by AMD and the semiconductor sector [6] Group 3: Investment Products and Market Performance - Direxion has launched two ETFs focused on AMD: the Direxion Daily AMD Bull 2X Shares (AMUU) and the Direxion Daily AMD Bear 1X Shares (AMDD), providing investors with leveraged and inverse exposure to AMD stock [7][8] - The AMUU ETF has experienced a decline of 38% since its debut, while the AMDD ETF has seen a modest increase of 6% during the same period [9][11] - Speculators are eyeing a potential rebound target for the AMUU ETF at $18.50, with recent positive momentum attributed to political developments [12]

Core Viewpoint - Advanced Micro Devices (AMD) stock has experienced significant gains amid a broader market rally, driven by easing trade tensions and positive analyst coverage [1][2][3]. Market Performance - AMD stock rose 4.5% on a day when the S&P 500 increased by 2% and the Nasdaq Composite by 2.7% [1]. - The broader market has rebounded this week following earlier sell-offs related to trade war concerns, with optimism surrounding potential trade deals with major partners like China [3]. Trade Relations - Reports indicate that the U.S. is making efforts to reduce trade war tensions, which has positively impacted investor sentiment towards AMD [2]. - There are suggestions of a forthcoming bilateral trade agreement between the U.S. and India, which could enhance the U.S.'s manufacturing position and reduce reliance on China [4]. Analyst Coverage - Susquehanna has updated its price target for AMD, lowering it from $150 to $135 per share while maintaining a positive rating, indicating a potential upside of approximately 43% over the next year [5]. - Despite recent adjustments in price targets due to market pressures, some analysts still see significant upside for AMD relative to its current valuation [6]. Business Outlook - AMD faces challenges such as restrictions on its MI308 processor sales to China and broader macroeconomic pressures, which may impact its performance outlook [6]. - However, there is potential for the stock to be undervalued if AMD can achieve significant success in the AI processor market [6].