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Advanced Micro Devices (AMD) Rises Higher Than Market: Key Facts

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In the latest close session, Advanced Micro Devices (AMD - Free Report) was up +2.95% at $532.05. The stock outpaced the S&P 500's daily gain of 0.7%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.

Shares of the chipmaker witnessed a loss of 18.05% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 7.7%, and the S&P 500's loss of 1.21%.

The upcoming earnings release of Advanced Micro Devices will be of great interest to investors. The company's earnings report is expected on November 3, 2026. The company's earnings per share (EPS) are projected to be $1.94, reflecting a 61.67% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $13.12 billion, up 41.89% from the prior-year quarter.

AMD's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $50.71 billion. These results would represent year-over-year changes of +81.06% and +46.4%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Advanced Micro Devices is at present trading with a Forward P/E ratio of 68.45. This signifies a premium in comparison to the average Forward P/E of 17.17 for its industry.

One should further note that AMD currently holds a PEG ratio of 4.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.43 at the close of the market yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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