Advanced Micro Devices (AMD) is set to reveal its AMD Q1 2025 Earnings report after markets close on Tuesday. Recently, several analysts have trimmed their price forecasts due to intensified U.S. restrictions on semiconductor exports to China.
Bank of America Securities revised its target down to $105 from $110, describing the new licensing rules as an “effective shipment ban” impacting AMD’s MI308 chips. AMD previously cautioned that it could incur up to $800 million in charges if it’s unable to obtain the required export license. In comparison, rival Nvidia (NVDA) may face a hit of $5.5 billion linked to its H20 chip exports.
Deutsche Bank lowered its target for AMD shares to $105 from $120 in late April, while Wedbush Securities pulled its estimate back to $115 from $150. The average analyst price target tracked by Visible Alpha stands at $123.50, representing a 25% upside from Friday’s closing value of $98.80. Among 12 analysts, six rate the stock as a “buy,” five suggest holding, and one advises selling. So far in 2025, AMD shares have declined by nearly 20%.
AMD Q1 2025 Earnings Outlook Remains Strong Despite Policy Risks
Citi analysts emphasized that enthusiasm around AI investment appears unaffected by the ongoing export tensions. “It seems AI spending continues without pause,” they wrote on Thursday. Tech giants are ramping up capital investment, with Meta (META) announcing plans to spend between $64 billion and $72 billion on AI infrastructure this year. Similarly, Microsoft (MSFT) and Google’s parent company Alphabet (GOOGL) reaffirmed their AI spending goals of $80 billion and $75 billion, respectively.
According to Citi, “AI infrastructure buildouts remain top priorities for hyperscalers, who appear ready to absorb tariff costs.” The firm noted this as a bullish indicator for AI-related stocks, including AMD.
AMD Q1 2025 Earnings Expectations by the Numbers
For the quarter, analysts predict AMD will report revenue of $7.13 billion—a 30% increase compared to the same period last year. Adjusted net income is expected to come in at $1.55 billion, or 94 cents per share, marking over 50% year-over-year growth. Notably, sales from the data center segment are forecasted to surge by 55%, reaching $3.63 billion.
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Source: www.investopedia.com
