Advanced Micro Devices (AMD) is currently facing overvaluation concerns, indicated by a Value Score of D, with shares trading at a forward Price/Sales ratio of 5.63X, compared to the industry average of 3.60X.
As of this year, AMD shares have declined by 3.9%, while the Zacks Computer and Technology sector grew by 2.5% and the Zacks Computer – Integrated Systems industry increased by 16.4%. The decline is attributed to macroeconomic challenges, including higher tariffs and export restrictions on certain GPUs to China.
Looking ahead, AMD expects second-quarter 2025 revenues of approximately $7.4 billion, which represents a year-over-year growth of around 27%, albeit impacted by $700 million in revenue reduction from halted MI308X shipments to China. The Zacks Consensus Estimate for AMD’s earnings stands at 56 cents per share, which is a 13.8% decrease over the past month, indicating an 18.84% year-over-year decline.
