Analysts' Predictions Regarding AMD Stock Before the Release of Financial Reports
AMD All Set to Unveil Q1 Results, Despite Tight Export Restrictions
Prepare for some essential revelations! AMD, the renowned chipmaker, is set to reveal its first-quarter results after the market wraps up on Tuesday. However, several analysts have adjusted their share price targets following the strict export restrictions put forward by the Trump administration last month.
Bank of America Securities has recently revised its price target from $110 to $105, labeling the new licensing requirements as an "effective ban" on AMD's MI308 chip exports. AMD warned last month that the move could incur charges of approximately $800 million if a license isn't secured. Nvidia, a competitor, anticipates a potential $5.5 billion charge related to its H20 chip.
Deutsche Bank analysts lowered their AMD price target to $105 from $120 in late April, while Wedbush Securities moved from $150 to $115 around the same time. Nevertheless, the consensus price target among analysts tracking AMD stands at $123.50, a 25% premium over Friday's closing price of $98.80. While six analysts suggest a "buy," five recommend a "hold," and one encourages a "sell." AMD's stock has stumbled by nearly one-fifth in 2025.
AI Spending Remains Resilient, Citi Says
Amidst doubts cast by tariffs, Citi analysts remain optimistic about AI spending. Meta Platforms, Microsoft, and Google parent Alphabet have all reiterated AI spending targets of $64-$72 billion, $80 billion, and $75 billion, respectively. Citi believes that these investments indicate a resilient AI infrastructure, which is viewed as a positive sign for AI-exposed stocks, including AMD.
Analysts anticipate AMD to post a first-quarter revenue of $7.13 billion, a 30% year-on-year increase, and an adjusted earnings of $1.55 billion, or 94 cents per share, more than 50% higher than the previous quarter. Data center sales are projected to surge 55% to $3.63 billion.
In the unforeseen landscape of trade tensions and regulatory challenges, AMD's resilience and market position continue to inspire a positive outlook. Despite the current wave of concerns, the chipmaker's innovative spirit and consistent growth prospects remain undeterred.
[1] The analysis of analyst sentiment has revealed a mixed picture, with a consensus recommendation of "Moderate Buy." Among the 41 analysts covering AMD, there are 26 "Strong Buy" ratings, one "Moderate Buy," and 14 "Holds."
[2] The mean price target for AMD stands around $141.22, representing a 45.1% premium over its current price levels. Some analysts at Bank of America and Morgan Stanley have designated targets between $175-$200, while others like Barclays and Bank of America have reduced their price targets due to global economic and trade risks.
[3] Further enrichment data suggests that these recent export restrictions and geopolitical tensions have created uncertainties. However, AMD's innovation and market share gains continue to support a positive outlook.
[1] Despite some analysts lowering their price targets due to strict export restrictions, the consensus among analysts tracking AMD remains optimistic, with a mean price target of approximately $141.22, representing a significant premium.
[2] otras analystas han designado target entre $175-$200, mientras que otras como Barclays y Bank of America han reducido sus target debido a riesgos económicos y comerciales mundiales.
[3] The consensus recommendation for AMD is "Moderate Buy," with a majority of 26 "Strong Buy" ratings, one "Moderate Buy," and 14 "Holds," indicating a positive outlook for the chipmaker.
[4] While AMD anticipates charges of approximately $800 million if a license isn't secured, the ongoing spending in AI infrastructure by companies like Meta Platforms, Microsoft, and Google parent Alphabet, which totals $64-$72 billion, $80 billion, and $75 billion respectively, offers a resilient outlook for AMD.
[5] AMD's resilience in the face of trade tensions and regulatory challenges, alongside its innovative spirit and consistent growth prospects, make the company an appealing target for investors, many of whom view technology stocks, such as AMD, as potential investments for the future.
