Advanced Micro Devices Inc (NASDAQ:AMD) started off the trading week with a downgrade from HSBC to "hold" from "buy," with the analyst in coverage citing valuation concerns amid the company's current production limits. Wedbush also chimed in with a price-target hike to $400 from $290. AMD also announced a multi-year AI partnership with the French government and launched the Ryzen 9 9950X3D2 Dual Edition CPU, a strong advancement featuring dual 3D V-Cache technology. At last glance, AMD was down 1.2% to trade at $356.28 this morning.
This news comes just ahead of Advanced Micro Device's first-quarter earnings report, due out after the close tomorrow, May 5. The company is expected to post earnings of $1.27 per share on revenue of $9.88 billion, both a roughly 30% increase from the same quarter last year.
AMD has a mixed earnings history, finishing five of its last eight post-earnings sessions lower, including a 17.3% drop on Feb. 4 after a dismal outlook. The stock has averaged a 7.3% next-day swing, regardless of direction, over the last two years, with the options pits pricing in an 11.3% move this time around.
April was AMD's best month on record. The stock skyrocketed 74.3% during this time, and closed Friday with its eighth-straight weekly gain after hitting an all-time high of $362.79. The rally has the security's 14-day relative strength index (RSI) sitting at 84.1, in "overbought" territory, though a positive earnings report could push it to even more records.
