Semiconductor giant Advanced Micro Devices (AMD Quick QuoteAMD - Free Report) is set to report first-quarter earnings results on Tuesday after the close. AMD, a Zacks Rank #2 (Buy), has surpassed the earnings mark in each of the last four quarters. But with shares pulling back recently amid sector weakness, is AMD a buy?

AMD is expected to post a profit of $0.60/share, which would reflect a flat outcome versus the same quarter last year. Estimates for the quarter have increased 1.69% over the past 60 days. Sales are projected to have risen 1.24% to $5.42 billion. The company has delivered a trailing four-quarter average earnings surprise of 2.96%.

The tech powerhouse faces significant hurdles including weakness in its Gaming division. The company also continues to experience significant competition from Nvidia in the GPU market.

Another obstacle that was recently announced is China’s growing technological decoupling. China will keep AMD processors out of government PCs and servers moving forward in an effort to buoy domestic technology in the face of U.S.-led restrictions on exports.

Earnings reactions can be extremely volatile and are based on a wide variety of factors. Our proprietary Zacks Earnings ESP (Expected Surprise Prediction) calls for another earnings beat for the upcoming announcement. Still, investors should exercise prudence ahead of the quarterly results.