AMD’s Stock Moving Up With Earnings After The Bell

AMD's stock price (NASDAQ: AMD) is moving up in extended hours trading, gaining 1.97%, after having flirted very closely with the 52 week low in yesterday's session. With earnings on deck after today's close, we take a look at what markets are expecting, along with the results from the last year.

Over the past year, AMD's stock has trended between a low of $112.80 and a high of $227.30. Despite having beat earnings expectations in each of the previous three reports, the level of the beats has not matched that of some of it's peers.

AfterAMD's stock shed 34.41% over the past 12 months, the company's market cap now stands at $185.44 billion, with a price-to-earnings (PE) ratio of 102.

AMD's recent financial performance includes a Q3 earnings report, announced on October 29 revealed $0.92 per share, aligning with analyst predictions.

The net margin was reported at 7.52%, with a return on equity of 6.62%. For the same quarter, AMD's revenue reached $6.82 billion, marking a 17.6% increase year-over-year, beating market expectations of $6.71 billion.

This marks a steady trend of beats on both top and bottom lines, yet the speed of growth, and the lack of penetration in some of the en vogue AI areas have left sentiment trailing names such as Broadcom, Marvell, and Nvidia.

Several investment firms have reassessed price targets on the stock in recent weeks. Benchmark set a price target of $200.00 with a “buy” rating, and Cantor Fitzgerald provided an “overweight” rating with a target of $180.00. Conversely, Mizuho reduced their target from $180.00 to $160.00 while maintaining an “outperform” rating. TD Cowen also revised their target, cutting it from $185.00 to $150.00 albeit with a “buy” rating.

After a run of successive earnings beats, markets will no doubt be expecting more of the same. The level at which any potential variation to expectations comes in will have a significant sway on the narrative for the time being, with guidance also expected to play a key role in allaying fears of either side of the bull/bear divide.