Advanced Micro Devices (AMD) ended the recent trading session at $154.72, demonstrating a -1.45% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq lost 0.39%.
Shares of the chipmaker have appreciated by 21.16% over the course of the past month, outperforming the Computer and Technology sector's gain of 9.6%, and the S&P 500's gain of 5.88%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on August 5, 2025. The company is predicted to post an EPS of $0.47, indicating a 31.88% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.41 billion, indicating a 26.96% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.85 per share and a revenue of $31.85 billion, representing changes of +16.31% and +23.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. At present, Advanced Micro Devices boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 40.77. This signifies a premium in comparison to the average Forward P/E of 19.93 for its industry.
We can also see that AMD currently has a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Integrated Systems was holding an average PEG ratio of 4.19 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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