Earnings Preview: What to Expect From Advanced Micro Devices' Report

Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. Valued at $402.4 billion by market cap, the company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services. The semiconductor giant is expected to announce its fiscal first-quarter earnings for 2026 after the market closes on Tuesday, May 5.

Ahead of the event, analysts expect AMD to report a profit of $1.04 per share on a diluted basis, up 33.3% from $0.78 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect AMD to report EPS of $5.75, up 75.8% from $3.27 in fiscal 2025. Its EPS is expected to rise 58.4% year over year to $9.11 in fiscal 2027. 

AMD stock has considerably outperformed the S&P 500 Index’s ($SPX) 28.9% gains over the past 52 weeks, with shares up 169.9% during this period. Similarly, it notably outperformed the State Street Technology Select Sector SPDR ETF’s (XLK) 47.8% gains over the same time frame.

AMD is well-positioned to ride the multiyear AI wave, gaining share in server and PC processors while expanding data center AI with Instinct GPUs and EPYC CPUs. Hyperscalers are scaling up AMD instances about 50% YoY, and partnerships with OpenAI and Meta Platforms, Inc. (META) signal massive demand. With Venice CPUs and MI500 GPUs coming, plus a full-stack AI push, AMD expects its data center segment to grow over 60% annually, targeting tens of billions in AI revenue by 2027.

Analysts’ consensus opinion on AMD stock is bullish, with a “Strong Buy” rating overall. Out of 45 analysts covering the stock, 31 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 12 give a “Hold.” AMD’s average analyst price target is $287.39, indicating a potential upside of 12.7% from the current levels.