Is AMD Stock a Buy Ahead of Q2 Earnings? Here's Wall Street's Take
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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.
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