Advanced Micro Devices is scheduled to report first-quarter financial results after market close on Tuesday. Analysts hold differing views on the company's prospects ahead of the earnings announcement.
Expectations for the quarter include revenues increasing by about 30% year-over-year to $7.12 billion, according to one data source. Adjusted earnings are anticipated to be $1.55 billion, or 94 cents per share, which would be more than 50% higher than the prior year. Data center sales are forecast to climb 55% to $3.63 billion.
Some analysts point to the company’s expanding presence in the data center and artificial intelligence sectors as positive factors. Advanced Micro Devices (AMD) is about to report Q1 earnings tomorrow. The company recently completed its $4.9 billion acquisition of ZT Systems, a maker of hyperscale servers. This move is seen as boosting AMD’s ability to support large AI cluster rollouts.
Spending on AI infrastructure by large technology firms appears strong. Companies like Meta Platforms, Microsoft, and Google parent Alphabet have indicated continued investment in AI capacity, a trend viewed positively for companies exposed to this market.
However, other analysts have adjusted expectations downward. Several firms have lowered their price targets for AMD Stock, citing challenges like new U.S. restrictions on AI chip sales to China.
The U.S. government implemented tightened export restrictions last month. What Analysts Think of AMD Stock Ahead of Earnings. One firm noted the new licensing requirements from the Trump administration could act as an effective shipment ban on some AMD chips, potentially resulting in charges if licenses are not secured.
Higher costs associated with the ZT Systems acquisition and weak demand in PC, gaming, and embedded markets are also factors contributing to caution among some analysts.
Overall, AMD holds a Moderate Buy consensus based on analyst ratings tracked by TipRanks. The average price target suggests potential upside from current levels, although some analysts prefer to remain on the sidelines for now. Options traders are anticipating a move of approximately 8.70% in either direction for AMD Stock immediately after the earnings report.
