AMD Stock: Advanced Micro Devices i.e. AMD quarterly earnings report is going to come after the market closes on Tuesday and at this time investors’ eyes are on AMD Stock. This company is emerging rapidly in the field of chip manufacturing and its AMD Stock price has increased by more than 40 percent this year. Analysts believe that the company sales will increase but profits may decrease. Still, there is enthusiasm about AMD future as the company has indicated that restrictions on chip exports to China may be eased soon. Let’s know what analysts are thinking about AMD Stock and how attractive it can be for investors.
AMD Stock Earnings Expectations
Analysts say that AMD Stock can present great sales figures this quarter. According to a survey by Visible Alpha, AMD is expected to report revenue of $7.43 billion in the second quarter, an increase of 27 percent over last year. This increase is happening due to strong data center sales, which is a big market for AMD. But on the other hand, the company adjusted net profit may fall to $796.6 million or 48 cents per share. This is much lower than last year $1.26 billion or 69 cents per share. In May, AMD reported that it had lost $800 million due to strict restrictions on chip exports to China. But now the company says that these restrictions may be eased soon, which is increasing investor confidence in AMD Stock.
Positive and Negative Aspects for AMD Stock
AMD recently indicated that it plans to start exporting its MI308 chips to China again as it hopes to get approval from the US government. Following this news, several major analysts raised their price targets for AMD Stock. UBS raised its target from $160 to $210 and Bank of America also set a target from $175 to $200. Bank of America believes that AMD can gain more than 30 percent of the CPU market by 2026, especially if Intel share decreases. Six of Visible Alpha 10 analysts have recommended buying AMD Stock while the rest have recommended holding it. Its price target ranges from $111 to $210. But some analysts are advising caution as the price of AMD Stock may already include many positive news and uncertainty related to export restrictions still remains.
Why investing in AMD Stock is special
AMD AMD Stock has reached close to $172 this year and this is due to the company excellent performance in the data center and AI sector. AMD EPYC chips are taking market share away from Intel and its MI350 chips are competing with Nvidia products. The company CEO Lisa Su says the AI accelerator market could be worth more than $500 billion by 2028. People investing in AMD Stock can take advantage of this growing market. But there are also risks such as rivals like Nvidia and Intel and export restrictions. If AMD performs better than expectations in its earnings, then AMD Stock can go up to $210.
Investors are advised to do their research and keep the market situation in mind before investing in AMD Stock. This company is showing great potential in the future but risks should not be ignored either.
This article is for information only. Seek expert advice before investing.
