Advanced Micro Devices (AMD) closed at $253.73 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 0.91%.
The chipmaker's shares have seen an increase of 16.16% over the last month, surpassing the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 3, 2026. On that day, Advanced Micro Devices is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 21.1%. Meanwhile, our latest consensus estimate is calling for revenue of $9.65 billion, up 26.02% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.97 per share and revenue of $33.95 billion. These results would represent year-over-year changes of +19.94% and 0%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.07% higher. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
In the context of valuation, Advanced Micro Devices is at present trading with a Forward P/E ratio of 39.26. This valuation marks a premium compared to its industry average Forward P/E of 24.28.
Meanwhile, AMD's PEG ratio is currently 0.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 0.96.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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