Gold prices bounce off 3-week lows; demand likely longer term
On Tuesday, KeyBanc analysts maintained a Sector Weight rating on AMD stock, which currently trades at $122.65 with a P/E ratio of 88.88. This decision follows adjustments to the company’s earnings estimates due to anticipated charges.
The analysts lowered their earnings per share (EPS) estimate for the second quarter of 2025 to $0.47, down from a previous estimate of $0.90. According to InvestingPro data, 23 analysts have recently revised their earnings estimates downward. This adjustment accounts for approximately $800 million in charges linked to the write-off of MI308, aligning with the consensus of many other estimates.
KeyBanc analysts also revised AMD’s gross margin forecast for the same quarter, reducing it from 54% to 43% to reflect these charges. For context, AMD’s current gross profit margin stands at 53.58%. The revised figures aim to provide a more accurate representation of AMD’s financial performance in line with market expectations. InvestingPro offers 15+ additional insights about AMD’s financial health and valuation metrics.
For the full year of 2025, the EPS estimate has been decreased to $3.80 from an earlier projection of $4.23. This new estimate is slightly below the market consensus of $3.95. The adjustments reflect the inclusion of one-time charges previously excluded from the estimates.
AMD’s stock remains under the Sector Weight rating as KeyBanc analysts continue to evaluate the company’s financial outlook amid these adjustments.
In other recent news, Advanced Micro Devices (NASDAQ:AMD) has been the focus of several analyst updates ahead of its "Advancing AI" event. Cantor Fitzgerald increased its price target for AMD to $140, citing potential growth in the AI sector and upcoming product developments like the MI350 and MI400 series. They maintained an Overweight rating, suggesting a more optimistic earnings per share (EPS) range of $5.50 to $5.75 for 2026. Meanwhile, Citi raised its price target to $120, maintaining a Neutral rating, and noted a one-time $800 million charge due to China export controls.
AMD’s strategic decision to sell ZT Systems’ manufacturing operations to Sanmina for $3 billion has also drawn attention. Wells Fargo (NYSE:WFC) reiterated an Overweight rating with a $120 target, emphasizing the importance of this sale in enhancing AMD’s rack-scale AI solutions. Stifel maintained a Buy rating with a $132 target, highlighting the strategic use of ZT Systems’ engineering team to boost AMD’s AI infrastructure capabilities.
Citi, however, kept its price target at $100 following the ZT Systems sale, maintaining a Neutral stance. This divestiture is seen as a move to focus on core competencies, with the retained engineering team expected to strengthen AMD’s market position against competitors like Nvidia (NASDAQ:NVDA). The market is keenly observing AMD’s integration of the ZT Systems team and its impact on future product offerings and market share.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.