Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market

Advanced Micro Devices (AMD) ended the recent trading session at $234.56, demonstrating a -1.69% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.63%. On the other hand, the Dow registered a loss of 0.65%, and the technology-centric Nasdaq decreased by 0.47%. The chipmaker's stock has climbed by 49.91% in the past month, exceeding the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92%.Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company plans to announce its earnings on November 4, 2025. The company is predicted to post an EPS of $1.17, indicating a 27.17% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.71 billion, indicating a 27.77% growth compared to the corresponding quarter of the prior year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.93 per share and a revenue of $32.91 billion, signifying shifts of +18.73% and +27.63%, respectively, from the last year. Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% lower. Advanced Micro Devices presently features a Zacks Rank of #3 (Hold). In the context of valuation, Advanced Micro Devices is at present trading with a Forward P/E ratio of 60.65. This denotes a premium relative to the industry average Forward P/E of 23.04. Investors should also note that AMD has a PEG ratio of 1.9 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 1.7 at yesterday's closing price. The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 13, finds itself in the top 6% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks