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May 5 - Advanced Micro Devices (NASDAQ:AMD) will unveil first-quarter 2025 earnings after markets close on Tuesday.
Analysts forecast EPS of $0.94, up about 52% year?on?year, and revenue of $7.12 billion, a roughly 30% increase. Despite 2025 headwinds, AMD has beaten consensus estimates in seven of the last nine quarters.
In late April, AMD closed its $4.9 billion acquisition of ZT Systems, a maker of hyperscale servers. The deal combines AMD's chip expertise with ZT's server?building capabilities, aiming to accelerate the rollout of large AI clusters and reinforce AMD's data?center footprint.
Wall Street is divided on AMD's outlook. Seaport Research initiated coverage with a "Buy" rating and $100 target, citing strong data?center growth and AI ambitions.
By contrast, Bernstein cut its target to $95 and maintained a Hold rating, warning that U.S. export curbs to China, integration costs from ZT, and soft PC and gaming demand could weigh on results.
Investors will focus on management's take on supply?chain impacts, customer demand trends, and the financial impact of the ZT Systems acquisition.
Is AMD Stock a Buy?
Based on the one year price targets offered by 40 analysts, the average target price for Advanced Micro Devices Inc is $134.47 with a high estimate of $200.00 and a low estimate of $70.00. The average target implies a upside of +36.10% from the current price of $98.80.
Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc in one year is $163.53, suggesting a upside of +65.52% from the current price of $98.80. For deeper insights, visit the AMD Forecast page.
This article first appeared on GuruFocus.