Advanced Micro Devices (AMD) is scheduled to report its fourth-quarter earnings after the market closes on February 6, 2025. Analysts anticipate a positive outlook, projecting revenue growth driven by strong demand for AI chips, despite the stock’s significant decline over the past year.
- AMD to report Q4 earnings Tuesday.
- Stock down nearly a third in 12 months.
- Analysts project strong AI chip demand.
- Revenue expected at $7.54 billion.
- Consensus price target is $164.
- Increased AI spending benefits AMD and rivals.
AMD’s anticipated earnings report comes amid a challenging year for the company, with its stock losing approximately 30% of its value due to concerns regarding its competitive position against Nvidia. Despite these challenges, analysts predict a revenue of $7.54 billion for the quarter, which marks a 22% increase from the previous year. Earnings are expected to reach $1.1 billion, translating to 67 cents per share, compared to 41 cents per share a year earlier.
Among the 14 analysts covering AMD, eight have issued a “buy” rating, while five have rated it as a “hold” and one as a “sell.” The consensus price target for AMD is $164, indicating a potential upside of about 40% from its recent trading price of $117.46. This optimism is bolstered by ongoing investments in AI technology, with firms like Meta planning substantial expenditures in this area.
Furthermore, analysts from Bank of America and Raymond James highlighted that competition from Chinese firms in the AI space could drive U.S. tech companies to increase their spending on AI. This trend is seen as beneficial for AMD and its competitors, as it could enhance demand for their products. Citi analysts noted that AI spending remains strong, citing Meta’s plans to invest between $60 billion and $65 billion this year as a positive indicator for AMD and others in the chipmaking sector.
In summary, AMD’s upcoming earnings report is anticipated to reflect strong growth in revenue and earnings, driven by demand for AI chips. Despite recent stock declines, analysts maintain a generally positive outlook, suggesting that the company could benefit from increased investment in AI technologies.
