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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: Here's Why

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Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $334.49, demonstrating a -3.83% change from the preceding day's closing price. This change lagged the S&P 500's 0.12% gain on the day. On the other hand, the Dow registered a loss of 0.13%, and the technology-centric Nasdaq increased by 0.2%.

The stock of chipmaker has risen by 72.19% in the past month, leading the Computer and Technology sector's gain of 16.05% and the S&P 500's gain of 9.3%.

The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on May 5, 2026. The company's upcoming EPS is projected at $1.28, signifying a 33.33% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.84 billion, indicating a 32.33% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $6.77 per share and a revenue of $45.57 billion, demonstrating changes of +62.35% and +31.54%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.48% increase. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).

In terms of valuation, Advanced Micro Devices is presently being traded at a Forward P/E ratio of 51.39. This valuation marks a premium compared to its industry average Forward P/E of 22.64.

One should further note that AMD currently holds a PEG ratio of 1.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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