Advanced Micro Devices (AMD) will report its fourth-quarter earnings after Tuesday’s closing bell, with analysts projecting significant revenue and earnings growth. The company is expected to generate $7.54 billion in revenue, up 22% year-over-year, and $1.1 billion in earnings, or 67 cents per share.
Despite the stock’s recent decline, which has seen it lose over a third of its value in the past 12 months, analysts are more bullish on AMD than bearish. A majority of covering analysts (eight out of 14) have issued a “buy” rating, while only five hold a neutral stance. Their consensus price target stands at $164, roughly 43% above Monday’s intraday price.
Analysts point to strong demand for AI chips and increasing competition in the space as driving factors behind AMD’s predicted growth. The entry of Chinese firms like DeepSeek has sparked concerns among US tech companies about competing for market share. However, industry analysts argue that this could lead to increased spending on AI, benefiting chipmakers such as AMD.
Industry heavyweights like Bank of America and Raymond James have noted that Meta plans to invest $60 billion to $65 billion in capital expenditures this year, which could drive up demand for AI chips. This trend is expected to benefit AMD, as well as rivals Broadcom, according to Citi analysts.
Source: https://www.investopedia.com/what-analysts-think-of-amd-stock-ahead-of-earnings-8784770