AMD's stock rally looks overdone to analysts at Jefferies, who are expecting some pullback after the company reports earnings on Tuesday afternoon.
Kevin Horner and Jenny Horne preview a trio of Tuesday's biggest earnings names: AMD, Supermicro (SMCI) and Caterpillar (CAT). Kevin identifies bullish and bearish technical formations taking shape on the charts, while Jenny compiles the fundamental storylines for each company headed into their latest quarterly figures release.
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Advanced Micro Devices (AMD) is scheduled to report second-quarter results after the closing bell Tuesday, after a strong run for the chipmaker's stock amid hopes export curb headwinds could soon ease.
Advanced Micro Devices' second-quarter 2025 performance is likely to have benefited from gains in data center and client segments amid headwinds from export controls.
Tech earnings from Microsoft and Meta exceeded expectations, driven by strong AI momentum and robust guidance, providing comfort to tech investors. Intel struggled with weak earnings, poor guidance, and ongoing restructuring, highlighting company-specific challenges rather than broader tech sector weakness.
Advanced Micro Devices, Inc.'s Q2 revenue is forecast at $7.43 billion, up 27.3% year-over-year, driven by MI300 GPU and EPYC server demand. EPS is expected to decline 30% YoY to $0.48 due to China export curbs and early-stage MI300 ramp costs. Gross margins could drop to 51–52% from 54% in Q1, pressured by high HBM costs and ROCm ecosystem investments.
Could AMD stock (NASDAQ:AMD) reach $330 in the next two years? There's a good chance of this happening.
I have closed out my entire Advanced Micro Devices, Inc. position, but I still expect good 12-month returns despite the likelihood of a near-term correction. My realized gain since buying in H1 2025 was 75% for the final closed stake. AMD's valuation is far too high in the near term. Definitely do not buy now. At least trim as a long-term investor, or close your position as an active trader.
Heading into Q2 earnings, Advanced Micro Devices, Inc.'s stock is up 126%, surpassing Nvidia, and the question is whether gains are going to stick or get lost. The stock has priced in the potential price hikes on Instinet MI350 and a pause of the export ban on China as AMD's AI story builds back up. While most buy AMD for AI growth, we're buy-rated it for CPU sales (server and client) upside.
Beyond analysts' top-and-bottom-line estimates for Advanced Micro (AMD), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
AMD's recent price surge and higher valuation have reduced the margin of safety, warranting a more cautious buy rating. Key catalysts include the GPU price hike, growing competitiveness versus Nvidia, and continued market share gains from Intel. Resumed GPU exports to China and AMD's dominance in AI inference further support a constructive long-term outlook.