What analysts think of the AMD share prior to earnings

On By Littum

Key takeaways

  • Advanced micro devices are set to report earnings in the fourth quarter after the final bell Tuesday.
  • Its stock has taken a hit and lost almost one -third of its value in the last 12 months in the midst of concern about the company’s prospects and ability to compete with Nvidia’s offer.
  • However, analysts are more bullish than Bearish on the stock, and suggested that AMD could continue to take advantage of strong expenses for AI with rivals.

Advanced micro devices (AMD) are set to report its results in the fourth quarter after the market closes on Tuesday, with analysts projecting revenue and earnings growth on strong demand for AI chips.

AMD is expected to report a $ 7.54 billion revenue, an increase of 22% year-over-year and earnings of $ 1.1 billion or 67 cents per year. Share, up from $ 667 million or 41 cents per Stock, a year earlier.

Of the 14 analysts covering the stock of visible alpha, eight have issued a “purchase” or similar rating compared to five “hold” assessments and a “sell”. Their consensus prices are $ 164, approx. 40% above Tuesday’s Intraday price of $ 117.46.

Shares have taken a hit and lost almost one -third of their value in the last 12 months in the midst of concern about the chipmaker’s vision and ability to compete with Nvidia’s (NVDA) offering.

However, in notes to clients last week, Bank of America and Raymond James analysts suggested competition in the AI ​​Rum of Chinese companies like Deepseek, which shook markets last week with its claims of a sophisticated cost-effective AI model that companies to that Use even more at AI in favor of chipmakers like AMD.

“The cost of AI continues unabated,” Citi Analysts said last week, pointing to Meta’s (Meta) planning to invest $ 60 billion to $ 65 billion in capital costs this year. This level of AI expenses is “good news” for AMD as well as rivals as well as Broadcom (AVGO), the analysts said.

Update – Feb. 4, 2025: This article has been updated to reflect recent analysts and share price values.