Advanced Micro Devices, Inc. Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next

Advanced Micro Devices, Inc. (NASDAQ:AMD) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Advanced Micro Devices beat earnings, with revenues hitting US$9.2b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Advanced Micro Devices' 45 analysts is for revenues of US$44.1b in 2026. This reflects a major 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 134% to US$4.52. Before this earnings report, the analysts had been forecasting revenues of US$42.1b and earnings per share (EPS) of US$4.12 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for Advanced Micro Devices

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to US$269per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Advanced Micro Devices, with the most bullish analyst valuing it at US$350 and the most bearish at US$134 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Advanced Micro Devices' rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Advanced Micro Devices to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Advanced Micro Devices following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Advanced Micro Devices going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.