Advanced Micro Devices (AMD) ended the recent trading session at $258.12, demonstrating a +1.2% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
Heading into today, shares of the chipmaker had gained 29.93% over the past month, outpacing the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.15%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on May 5, 2026. In that report, analysts expect Advanced Micro Devices to post earnings of $1.28 per share. This would mark year-over-year growth of 33.33%. In the meantime, our current consensus estimate forecasts the revenue to be $9.84 billion, indicating a 32.32% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.73 per share and revenue of $45.37 billion. These totals would mark changes of +61.39% and +30.97%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.93% higher. At present, Advanced Micro Devices boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 37.91. Its industry sports an average Forward P/E of 20.95, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can also see that AMD currently has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.8 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).