Advanced Micro Devices AMD shares rallied 13.9% in the last trading session to close at $347.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 49.8% gain over the past four weeks.
AMD’s prospects are benefiting from strong demand for EPYC processors that power cloud and enterprise workloads. Emerging AI use cases and rapid adoption of agentic AI are generating demand for general-purpose compute infrastructure, benefiting EPYC demand.
This chipmaker is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $9.84 billion, up 32.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Advanced Micro, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AMD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Advanced Micro is part of the Zacks Computer - Integrated Systems industry. Seagate STX, another stock in the same industry, closed the last trading session 0.2% lower at $586.25. STX has returned 55.1% in the past month.
For Seagate, the consensus EPS estimate for the upcoming report has changed +6.7% over the past month to $3.5. This represents a change of +84.2% from what the company reported a year ago. Seagate currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
