Erste Group Bank Issues Optimistic Forecast for AMD Earnings

Key Points

• Erste Group Bank raised its AMD earnings forecasts to $6.47 per share for fiscal 2026 and $12.37 for fiscal 2027, maintaining a Buy rating. The 2026 estimate exceeds the broader consensus of $6.27.
• AMD’s latest quarterly results surpassed expectations, with EPS of $1.37 versus $1.29 expected and revenue of $10.25 billion, up 37.8% year over year.
• Analyst sentiment remains broadly positive, but AMD’s roughly 149-times trailing price-to-earnings ratio and ongoing semiconductor-sector volatility pose risks ahead of its scheduled Aug. 4 earnings report.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) - Equities research analysts at Erste Group Bank boosted their FY2026 earnings estimates for shares of Advanced Micro Devices in a report issued on Monday, July 27th. Erste Group Bank analyst S. Lingnau now anticipates that the semiconductor manufacturer will earn $6.47 per share for the year, up from their previous estimate of $6.41. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Advanced Micro Devices' current full-year earnings is $6.27 per share. Erste Group Bank also issued estimates for Advanced Micro Devices' FY2027 earnings at $12.37 EPS.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business had revenue of $10.25 billion for the quarter, compared to analysts' expectations of $9.90 billion. During the same period last year, the firm earned $0.96 earnings per share. The business's quarterly revenue was up 37.8% on a year-over-year basis.

Several other brokerages also recently issued reports on AMD. DA Davidson lifted their target price on Advanced Micro Devices from $375.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. TD Cowen increased their price objective on shares of Advanced Micro Devices from $600.00 to $675.00 and gave the company a "buy" rating in a report on Monday, July 13th. Bank of America lifted their price objective on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Citigroup raised shares of Advanced Micro Devices from a "market perform" rating to a "buy" rating in a report on Wednesday, July 22nd. Finally, Jefferies Financial Group upped their target price on shares of Advanced Micro Devices from $515.00 to $640.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $528.11.

Advanced Micro Devices Stock Performance

NASDAQ AMD opened at $454.62 on Wednesday. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. Advanced Micro Devices has a twelve month low of $149.22 and a twelve month high of $584.73. The business has a 50-day moving average price of $514.89 and a 200-day moving average price of $345.23. The firm has a market cap of $741.30 billion, a price-to-earnings ratio of 149.06 and a beta of 2.47.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently bought and sold shares of AMD. Brighton Jones LLC increased its stake in Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after acquiring an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC lifted its stake in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock valued at $1,001,000 after purchasing an additional 234 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Advanced Micro Devices by 125.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock worth $758,000 after purchasing an additional 2,970 shares during the period. United Bank increased its position in shares of Advanced Micro Devices by 22.0% during the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock valued at $1,881,000 after purchasing an additional 2,392 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its position in shares of Advanced Micro Devices by 361.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock valued at $1,310,000 after purchasing an additional 7,228 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the sale, the director owned 87,173 shares of the company's stock, valued at $45,504,306. The trade was a 9.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the sale, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This trade represents a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 310,310 shares of company stock worth $141,185,456 over the last three months. 0.50% of the stock is owned by company insiders.

Key Headlines Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD announced an infrastructure partnership with Core Scientific that provides access to up to 2.5 gigawatts of data-center capacity, including an initial 530-megawatt deployment. The 15-year agreements are designed to support deployments of AMD Instinct GPUs, EPYC CPUs and ROCm software, helping address power and data-center constraints. Core Scientific and AMD Announce Infrastructure Partnership
• Positive Sentiment: Erste Group Bank raised its AMD EPS estimates to $6.47 for fiscal 2026 and $12.37 for fiscal 2027, while maintaining a Buy rating. The forecasts are above the current-year consensus estimate of $6.27. Advanced Micro Devices analyst estimates
• Positive Sentiment: Analysts remain optimistic about AMD’s AI platform strategy following its Helios rack launch and related AI partnerships. Mizuho lifted its price target to $625, while Wedbush raised its target to $600 and retained an Outperform rating. Mizuho lifts AMD price target
• Neutral Sentiment: AMD is scheduled to report second-quarter results on Aug. 4. Options pricing implies substantial volatility around the release, with market expectations near $1.61 in EPS and $11.30 billion in revenue. AMD earnings volatility forecast
• Negative Sentiment: AMD’s high valuation—roughly 150 times trailing earnings—has made the stock vulnerable to profit-taking and disappointing guidance. Commentary has questioned whether current growth expectations are already reflected in the share price. AMD valuation analysis
• Negative Sentiment: The broader semiconductor sell-off has intensified amid concerns about China’s progress in domestic memory and lithography production, rising data-center financing costs and uncertainty over the sustainability of AI spending. AMD has declined alongside Nvidia, Micron and other chipmakers. Semiconductor sell-off report

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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