Advanced Micro Devices (AMD) closed the latest trading day at $120.79, indicating a -1.35% change from the previous session’s end. The stock’s performance was behind the S&P 500’s daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.
Shares of the chipmaker witnessed a loss of 13.81% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.86% and the S&P 500’s loss of 1.98%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is forecasted to report an EPS of $1.07, showcasing a 38.96% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.52 billion, indicating a 21.84% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.31 per share and a revenue of $25.66 billion, representing changes of +24.91% and +13.13%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 37.03. For comparison, its industry has an average Forward P/E of 14.6, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 1.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The average PEG ratio for the Computer – Integrated Systems industry stood at 1.75 at the close of the market yesterday.
Advanced Micro Devices (AMD) is one of the leading semiconductor companies in the world, known for its high-performance computing products. However, the company recently registered a bigger fall than the overall market, prompting investors to take note of some important facts.
1. Market Volatility: AMD’s stock price has been more volatile than the overall market in recent weeks, with the company experiencing larger swings in value compared to other tech companies. This increased volatility may be a cause for concern for some investors.
2. Competition from Intel and Nvidia: AMD faces stiff competition from major rivals Intel and Nvidia in the semiconductor industry. Any missteps or setbacks in product development or market share could lead to further declines in AMD’s stock price.
3. Supply Chain Issues: Like many companies in the tech sector, AMD has been affected by supply chain disruptions and component shortages. These challenges could impact the company’s ability to meet demand and generate revenue in the near term.
4. Earnings Performance: AMD’s recent earnings report may have also contributed to its larger fall compared to the market. Investors may be concerned about the company’s revenue growth, profit margins, and guidance for future quarters.
5. Long-Term Growth Prospects: Despite these challenges, AMD remains well-positioned for long-term growth, driven by its innovative product lineup and strong market position in key sectors like gaming, data centers, and cloud computing. Investors should consider the company’s growth potential when evaluating its stock performance.
In conclusion, while AMD’s recent stock performance may have raised some concerns among investors, it is important to consider the company’s long-term growth prospects and competitive strengths. Keeping these important facts in mind can help investors make informed decisions about their investment in AMD.
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