Semiconductor company Advanced Micro Devices (AMD) will report its Q1 2025 earnings after the stock market closes today. Wall Street expects the chip company to post adjusted earnings per share of 94 cents alongside revenue of $7.12 billion. Should investors buy shares before it posts earnings?
AMD has a strong track record of beating estimates. The chipmaker has surpassed EPS estimates in six of the previous eight quartersand exceeded revenue forecasts in seven of the last eight.
Investors and analysts will also be closely watching AMD’s outlook in its upcoming earnings report. An ongoing trade war, tariffs, and economic uncertainty have impacted traders’ confidence. They may also be interested in AMD earnings as it could provide a hint of what to expect from Nvidia’s (NVDA) earnings report later this month.
What Do Analysts Expect from AMD in Q1?
Five-star Bank of America analyst Vivek Arya recently updated his coverage of AMD ahead of its Q1 earnings report. He reiterated a Hold rating and price target of $105 per share, representing a potential 4.38% upside for AMD stock.
Arya expects AMD to post strong Q1 results on the back of increased server CPU sales and gains in its desktop PC market share. However, the analyst has concerns about the company’s future. Chief among these is the impact of China’s restrictions on its MI308 products. He expects this to create a significant sales headwind and lower gross margins in Q2 2025.
Investor sentiment also appears cautious ahead of AMD’s Q1 report. The company’s stock slid 0.91% in pre-market trading today. On top of that, the Overall Consensus Technical Sentiment is Neutral, based on 10 Bearish, two Neutral, and 10 Bullish indicators.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 15 Buy and seven Hold ratings over the last three months. With that comes an average price target of $126.40, representing a potential 25.66% upside for AMD stock.
