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Advanced Micro Devices (AMD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Advanced Micro Devices (AMD - Free Report) closed at $236.73 in the latest trading session, marking a -6.13% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.94%.

Shares of the chipmaker witnessed a gain of 17.75% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.51%, and the S&P 500's gain of 0.89%.

Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company plans to announce its earnings on February 3, 2026. The company is predicted to post an EPS of $1.32, indicating a 21.1% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.67 billion, up 26.23% from the year-ago period.

AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.97 per share and revenue of $33.97 billion. These results would represent year-over-year changes of +19.94% and 0%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.63% higher within the past month. Advanced Micro Devices is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Advanced Micro Devices is presently being traded at a Forward P/E ratio of 39.68. This signifies a premium in comparison to the average Forward P/E of 24.55 for its industry.

It's also important to note that AMD currently trades at a PEG ratio of 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.98 at the close of the market yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 47, positioning it in the top 20% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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