What Analysts Think of AMD Stock Ahead of Earnings
Key Takeaways
Advanced Micro Devices (
AMD
) is slated to report quarterly results after the closing bell Tuesday, and several analysts have lowered their price targets in recent weeks in the wake of
tighter restrictions
on U.S. chip exports to China.
Bank of America Securities recently dropped price target to $105 from $110, calling the new licensing requirements from the Trump administration an “effective shipment ban” on AMD’s MI308 chips. AMD warned last month that the move could result in charges of
$800 million
if it isn’t able to secure a license. Competitor Nvidia (
NVDA
) has meanwhile said it faces a potential $5.5 billion charge related to its H20 chip.
Deutsche Bank analysts in late April cut their AMD price target to $105 from $120, while Wedbush Securities around the same time moved to $115 from $150.
The consensus price target of analysts following AMD who are tracked by Visible Alpha is $123.50, a 25% premium over Friday’s closing price of $98.80. Out of 12 tracked analysts, six rate the stock a “buy,” compared with five “hold” ratings and one “sell.” AMD stock has lost nearly a fifth of its value in 2025.
AI Spending a Positive Sign, Citi Says
Despite the uncertain tariff environment, Citi analysts wrote Thursday, “it appears that spending for AI continues to be unabated.” Meta Platforms (
META
) this week said it plans to raise its capital expenditures this year to
$64 billion to $72 billion
to build AI infrastructure, while Microsoft (
MSFT
) and Google parent Alphabet (
GOOGL
) reiterated AI spending targets of
$80 billion
and
$75 billion
, respectively.
“AI infrastructure buildouts remain as key priorities for hyperscalers with the companies’ willingness to absorb the costs of tariffs,” Citi said. “We view this as positive for AI-exposed stocks,” including AMD, they wrote.
Analysts expect
AMD to report first-quarter revenue of $7.13 billion, up 30% year-over-year, alongside adjusted earnings of $1.55 billion, or 94 cents per share, more than 50% higher than the year-ago quarter. Data center sales are expected to climb 55% to $3.63 billion.
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