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Advanced Micro Devices (AMD) Outperforms Broader Market: What You Need to Know

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Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $207.67, demonstrating a +2.21% change from the preceding day's closing price. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.26%.

Shares of the chipmaker witnessed a loss of 3.61% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.85%, and the S&P 500's gain of 1.89%.

The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on February 3, 2026. On that day, Advanced Micro Devices is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 20.18%. At the same time, our most recent consensus estimate is projecting a revenue of $9.64 billion, reflecting a 25.88% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.96 per share and a revenue of $33.94 billion, signifying shifts of +19.64% and 0%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Advanced Micro Devices presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 32.47. This expresses a premium compared to the average Forward P/E of 24.02 of its industry.

Also, we should mention that AMD has a PEG ratio of 0.75. 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. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.92.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.


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