Is AMD Stock a Buy Ahead of Q2 Earnings? Here's Wall Street's Take
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Expectations from AMD's Q2 Earnings
AMD delivered impressive first-quarter results, with its data center segment's revenue rising 57%. The company's overall revenue growth has been accelerating in recent quarters.
Wall Street expects AMD to report earnings per share (EPS) of $0.48 for Q2 2025, reflecting a 30% year-over-year decline. Meanwhile, revenue is estimated to grow by 27% to $7.41 billion.
Looking ahead, Advanced Micro Devices' latest Instinct MI350X and MI355X graphics processing units (GPUs), which compete with Nvidia's (NVDA) Blackwell platform, are expected to boost its AI revenue. Moreover, the upcoming MI400X AI accelerator is expected to drive AMD's top-line higher.
Analysts' Views Ahead of AMD's Q2 Results
Heading into the Q2 results, Erste Group analyst Stephan Lingnau upgraded AMD stock from Hold to Buy, noting that the company sees further growth in 2025 based on the growing demand for high-performance CPUs and GPUs in data center environments. The analyst expects AMD's operating margin to increase in the medium term and profit growth to accelerate significantly next year. Lingnau expects AMD stock to continue to rise, given the company's 'good growth prospects.'
Meanwhile, Citi analyst Christopher Danely increased his price target for AMD stock to $165 from $145, while maintaining a Hold rating. The 5-star analyst expects AMD stock to move higher ahead of the Q2 earnings report, driven by improving sentiment and the company's strong positioning in AI-related growth. That said, Danely is concerned that buy-side expectations for AMD may be too high.
Is AMD Stock a Good Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 26 Buys and 10 Holds. The average AMD stock price target of $145.90 indicates a possible downside of 12.4% from current levels.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
NVIDIA Corporation (NVDA) Released its CUDA-Q version 0.12
NVIDIA Corporation (NASDAQ:NVDA) is one of the . On August 4, NVIDIA Corporation (NASDAQ:NVDA) released CUDA-Q version 0.12, a new tool to speed up research in quantum computing. One of the key features of CUDA-Q is the new run API, which allows users to get detailed data on each run in a quantum simulation. This shot-level data helps researchers analyze noise, select precise results, and benchmark circuits more effectively. Moreover, the updated version also improves the CUDA-Q dynamics backend and now supports better multidiagonal sparse matrix operations and batching of quantum states. CUDA-Q is an open-source platform that integrates classical and quantum computing. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. NVIDIA Corporation (NASDAQ:NVDA) is a leading tech company that develops advanced computing technologies focused on accelerated computing and graphics. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
an hour ago
- Miami Herald
Nvidia tops list of veteran analyst's best stocks for rest of 2025
Wall Street's still bullish on AI, and Wedbush just named its five must-watch tech stocks to scoop up for the rest of 2025. Nvidia's (NVDA) was perhaps a no-brainer, with its mission-critical role as the engine behind nearly every noteworthy AI deployment. Don't miss the move: Subscribe to TheStreet's free daily newsletter But the other four? They spread their tentacles across multiple sectors and strategies, each offering something unique in what Wedbush calls the "golden age of tech." The common thread: They're all tied to the fast-evolving real-world scaling of AI. Image source: Chesnot/Getty Images Nvidia's the ultimate juggernaut in the AI realm, with a chokehold on the AI accelerator space and a pace of innovation that's second to none. Today, Nvidia controls north of 90% of the global AI accelerator market, led by the explosive demand for its H100 and H20 GPUs. Even with the escalating tensions between the U.S. and China, Nvidia managed to maintain export licenses, enabling it to cater to its Chinese clients. Related: Jim Cramer drops jaw-dropping price target on Palantir stock post-earnings Also, earlier this year, Nvidia crossed a $4 trillion market cap, a rare feat that's indicative of its critical role in every major cloud provider's AI strategy. Whether it's Amazon, Microsoft (MSFT) , or Google, they're all running Nvidia chips, for both model training and high-throughput inferencing. But hardware is just part of the story. Nvidia's real moat is arguably its robust software stack. CUDA, launched over a decade ago, has become the backbone for the bulk of AI development today. Add in cuDNN, TensorRT, and other optimized libraries, and the result is impeccable speed and developer efficiency. Its powerful new Blackwell architecture, successor to Hopper, adds next-level performance-per-watt, setting the stage for swifter large-language-model training with specialized tensor cores. Also, at the COMPUTEX event this year, CEO Jensen Huang doubled down. Nvidia will be involved in building a massive $500 billion worth of AI infrastructure in the U.S. over four years, while expanding its sovereign-cloud partnerships across Europe and the Middle East. Tech heavyweights are just a huge vote of confidence from the veteran analyst team at Wedbush. In a new note, popular tech analyst Daniel Ives and his team doubled down on their top five picks for the second half of 2025. These included Nvidia, Meta Platforms (META) , Microsoft, Palantir Technologies (PLTR) , and Tesla (TSLA) . The first four in particular, though, "paint a bullish story for the AI revolution." Related: Cathie Wood splurges $4.1 million on popular AI stock "The Street is still underestimating the AI-driven growth wave coming," Wedbush said, pointing to healthier Q2 earnings that effectively "validated" the bull case across the board. Palantir in particular killed it with a "blowout quarter," cementing its place as the "poster child" for AI's next phase. Wedbush believes the AI market is still in its early stages, and the firm is tracking $2 trillion in enterprise and government AI spending over the next three years. "We've barely scratched the surface of this fourth industrial revolution," Ives wrote, adding that tech leaders like Nvidia, Microsoft, Palantir, Meta, and Alphabet are setting new benchmarks. More News: Warren Buffett's stock sends louder signals than Berkshire's earnings beatVeteran analyst spots unexpected star in Apple's earnings reportNvidia avoids White House crackdown; Trump softens on AI giant Additionally, he talked about the strength in the broader software sector as the next big wave. As more companies move from AI experimentation to full-scale adoption, Wedbush sees the incredible momentum accelerating into year-end. Big tech's AI leaders stay hot, with one notable exception Nvidia is arguably the undisputed king in the AI momentum trade. The chipmaker is still climbing, up more than 31.72% year-to-date and a whopping 55.8% over the past three months alone. Investor optimism is centered around robust data-center demand and easing tensions between the U.S. and China. What's most surprising is that even with export-license delays and geopolitical pressure, institutions continue to pour into the AI behemoth. Meta Platforms isn't far behind. A strong Q2 showing triggered an 11% post-earnings jump, with revenue growth coming in at an impressive 22%. CEO Mark Zuckerberg's AI-led ad upgrades and ramp-up in AI hardware hiring have helped push the stock to roughly 31% higher YTD, and 30.43% over three months. Reality Labs continues to bleed cash, but the core business looks stronger than ever. Microsoft, now a $4 trillion club member, leans on its cloud giant Azure's mid-30% year-over-year growth and a deepening OpenAI partnership. Also, with Windows 10 support ending in October, a PC upgrade cycle looms. Also, a massive $80 billion AI infrastructure spend planned for 2025 could supercharge its lead. Consequently, the stock is up more than 25% YTD and 21% in three months. Palantir is perhaps the dark horse. It recently posted powerful Q2 results, where revenue surged 48% YOY to over $1 billion, and retail enthusiasm hasn't cooled off, either. Shares are up a staggering 128% YTD, including 58.45% over the past three months. EV giant Tesla, meanwhile, is the clear laggard, down 22.37% YTD, despite a short-term 20.5% bump in recent months. European EV sales have cratered, and CEO Elon Musk's political presence continues to stir the pot. Related: Morgan Stanley slaps eye-popping price target on Nvidia stock The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
4 hours ago
- Yahoo
These are the top takeaways for investors from the latest high-profile earnings reports
The stock market has been buoyed by strong corporate earnings. Of the firms that have reported results, 82% have beaten estimates. Here are key takeaways for investors from recent earnings. Companies have reported mostly strong second-quarter earnings so far, but there are some specific takeaways investors should be aware of. So far, 82% of companies that have reported results have beaten estimated. According to FactSet, if that percentage holds, it will represent the highest percentage of quarterly earnings beats since the third quarter of 20221. Earnings will continue rolling in over the coming weeks, with tech titan Nvidia set to report at the end of August. Until then, here are some key insights from the last results: AMD & Super Micro: Trump's trade policy is hitting the semiconductor sector What happened: Advanced Micro Devices and Super Micro Computer both reported earnings for the second quarter on Tuesday, with mixed results. AMD beat on revenue, but missed earnings estimates slightly. The chipmaker posted adjusted earnings per share of $0.48, a hair below the expected $0.49 a share. Lisa Su, AMD's CEO, said the firm's AI revenue declined on a year-over-year basis largely due to US export restrictions, which have prevented AMD from selling its MI308 AI chip to China. Shares were down as much as 8% on Wednesday. Super Micro, meanwhile, missed slightly on both earnings and revenue. The chipmaker said revenue came in at $5.76 billion, below the expected $5.89 billion, and earnings per share came in at $0.41, below the $0.44 Wall Street expected. The miss was partly fueled by the impact of President Donald Trump's tariffs, Charles Liang, the CEO, said on a call with analysts on Tuesday. Shares of the chipmaker were down 17% after the results. What it means: AI chip manufacturers are caught in the crossfire of the trade war. That's expected to remain a key concern as the US irons out the details of its trade relationship with China. The US and China have until August 12 to strike a trade deal before higher tariffs kick in, another headwind that could rattle the market and semiconductor stocks in particular. "Industry-wide tariff impact is only now being felt and could result in headwinds for the entire semiconductor industry," Gadjo Sevilla, a senior analyst at EMARKETER, wrote in a note. McDonald's: US consumers are in a precarious position What happened: McDonald's beat on earnings and revenue expectations for the quarter, but voiced concerns about the health of lower-income consumers and the ability of Americans to keep spending. The fast food franchise said revenue came in at $6.84 billion for the quarter, above the $6.7 billion analysts expected. Earnings per share came in at an adjusted $3.19, above estimates of $3.15. "Re-engaging the low-income consumer is critical," Chris Kempczinski, the CEO, said on the company's earnings call, adding that low-income Americans were more likely to visit the chain than other income groups. "This bifurcated consumer base is why we remain cautious about the overall near-term health of the US consumer." What it means: Consumer spending is in focus for retail giants and for Wall Street, given the cumulative effects of inflation in recent years and Trump's tariffs. Economists say tariffs could stoke inflation, as companies can pass along the cost of import duties to consumers. For now, though spending remains fairly strong, even as concerns have risen recently around a pullback among both high and low-income households. Palantir: Hype for AI still strong What happened: Palantir blew past estimates for second quarter earnings. The data software firm revealed that its revenue surpassed $1 billion for the first time, reflecting a 55% year-over-year increase. Shares popped as much as 10% after its results, bringing the stock up 130% year-to-date. What it means: The AI trade is alive and well, with firms still benefitting from the hype for artificial intelligence. Wedbush Securities called Palantir the "Messi of AI" in a note to clients shortly after the firm reported earnings. In a separate note, analysts lifted their price target for the stock to $200 a share, implying 15% upside from current levels. "Palantir remains one of our top tech names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across the federal and commercial landscapes," analysts said. Microsoft and Meta: Mega-cap tech still dominates What happened: Microsoft and Meta both beat on earnings last week. Microsoft took in $76.4 billion in revenue and $3.65 in earnings per share, above estimates of $73.8 billion and $3.37 a share. The company also joined the $4 trillion club for the first time as its stock surged following its earnings report, with shares up 26% year-to-date. Meta, meanwhile, took in $47.5 billion in revenue and $7.14 in earnings per share, above estimates of $44.83 billion and $5.89 a share. The stock is up 27% year-to-date. What it means: Mega-cap tech is still dominating the market. Tech was best-performing area of the S&P 500 in July, with the sector up 5% in the month. The Nasdaq hit 14 record highs in July, causing Deutsche Bank to declare that "tech-ceptionalism" has resumed for the market. The strong outperformance of large-cap stocks accelerated, further widening the gap between small-cap peers. "We continue to favor US large cap Tech over its small cap counterpart, as it takes a highly speculative market (i.e. 2021) or Big Tech to fall out of favor (i.e. 2022, Q4 2024) for the latter to outperform," Nicholas Colas, the co-founder of the research firm DataTrek, wrote in a note. Read the original article on Business Insider Sign in to access your portfolio
