Advanced Micro Devices is set to report first-quarter earnings after the market closes today, with market participants watching closely for the chipmaker's performance metrics and forward outlook. Traders are positioning for a notable movement in AMD Stock following the results, while analyst opinions on the shares show division.
Options market data suggests traders anticipate the stock could shift around 8% in either direction in the days after the report. This potential swing aligns with the stock's average post-earnings volatility over the last four quarters, which has been about 7.5%.Analysts generally project a positive quarter for AMD. Consensus estimates forecast first-quarter data center revenue increasing by 55% year-over-year, contributing to an overall sales growth of 30%. Adjusted earnings are expected to see a substantial jump, potentially exceeding 50% compared to the prior year.
Despite the anticipated growth, analyst ratings on AMD Stock present a mixed picture. Analysts are split on the stock's outlook heading into the report. Recent price target adjustments reflect varying perspectives, with some firms like Cantor Fitzgerald lowering their targets while Seaport Research initiated coverage with a positive view.A major factor influencing the outlook is the recent tightening of U.S. restrictions on semiconductor exports to China. These rules have led to concerns about market access for advanced chips, including AMD's offerings. AMD has indicated it could be saddled with charges tied to these restrictions and their impact on sales opportunities in the region. Bloomberg Intelligence analysis noted the restrictions could significantly affect expected AI sales.
Counterbalancing the export challenges is robust demand from companies investing in artificial intelligence infrastructure. Major providers of cloud services, often referred to as hyperscalers, are committing substantial capital to AI technology. This spending trend is seen as a positive development for AMD, offering a tailwind amid other market uncertainties.The stock has seen downward pressure over the past year, losing approximately 36% of its value in the last 12 months. It is down roughly 17-18.5% since the beginning of this year.
In a recent interview, AMD CEO Lisa Su commented on the government's trade policies, stating the company is focused on innovation speed rather than dwelling on tariff concerns. She emphasized building the best technology and collaborating with customers as the company's primary goals.