Advanced Micro Devices (AMD) is set to report its Q2 2025 earnings on Tuesday, August 5, after the market closes. AMD stock has gained 42% in 2025 so far, driven by investors’ growing confidence in the company’s AI chip strategy. The stock rally picked up pace after the company unveiled its upcoming MI350 chip at its AI event in June. Positive sentiment was further boosted by reports that AMD intends to raise prices on its MI350 chip, indicating strong demand. Wall Street analysts expect the company to post revenues of $7.41 billion, up 27% from the year-ago quarter, according to data from the TipRanks Forecast page.
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However, earnings are expected to decrease by about 30% from the year-ago quarter to $0.48 per share. Notably, AMD has an encouraging earnings surprise history. The company missed earnings estimates just twice out of the previous nine quarters.
Analysts’ Views Remain Divided Ahead of Q2 Earnings
Wall Street is divided on AMD’s short-term outlook. While some analysts expect strong growth driven by AI demand, others remain cautious due to lofty expectations and execution risks.
For instance, Erste Group’s Stephan Lingnau upgraded AMD to Buy, citing strong demand for high-performance chips and rising margins. He expects profit growth to pick up in 2025 and sees “good growth prospects” for the stock.
Meanwhile, DZ Bank analyst Ingo Wermann downgraded the stock from Buy to Sell but increased the price target to $150.00 from $118 per share. Also, Bernstein Top analyst Stacy Rasgon prefers to remain on the sidelines. While he raised his price target on AMD to $140, he kept a neutral rating, pointing to high valuations and near-term risks like “tariff pull-forwards.” Rasgon sees near-term upside from China AI sales and the MI350 launch but warned that investor expectations may already be “elevated.”
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.97% move in either direction.
Is AMD Stock a Good Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 24 Buys, 10 Holds, and 1 Sell rating. The average AMD stock price target of $156.47 indicates a possible downside of 8.87% from current levels.
