Sentiment surrounding AMD (AMD, Financial) ahead of its upcoming Q4 2024 earnings release suggests a “below consensus” guide for Q2 2025 is already priced into the stock, according to Wells Fargo.
Shares rose 0.99% to $115.30 as of 08:13 AM ET in premarket trading on Wednesday. Analyst Aaron Rakers noted AMD shares are trading near their 52-week low, at about 18 times the 2026 earnings estimate of $6.45 per share—significantly below the three-year average of 31 times. He said the market may already be discounting a 10% downward revision to forward EPS estimates, reflecting a potential drop to $6 per share for 2026.
Revenue and earnings estimates for AMD have declined between 2% to 3% and 3% to 4%, respectively, since December, Rakers said. While maintaining his Overweight rating and $165 price target, he struck a cautious tone ahead of the results, citing weaker sentiment on AMD's Data Center GPU revenue projections, which he expects to drop from over $9 billion to around $8.5 billion in 2025.
Analysts, on average, expect AMD to report Q4 earnings of $1.09 per share on $7.53 billion in revenue.
