All Eyes On AMD's Outlook Amid Tariff Threat As Investors Brace For Q1 Results: Retail Stays Circumspect

Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) is scheduled to report its quarterly results Tuesday after the market close, even as Trump tariffs threaten to halt chipmakers' artificial intelligence (AI)- fueled growth.

The Finchat-compiled consensus estimates call for adjusted earnings per share (EPS) of $0.93 and revenue of $7.12 billion for the first quarter of the fiscal year 2025.

This compares to the year-ago's $0.62 and $5.47 billion, respectively.

AMD's guidance issued in early February calls for revenue of $7.1 billion, plus or minus $300 million. 

The company guided non-GAAP gross margin to 54%, which is flat at the fourth-quarter level.

The data center business trends will likely be in the spotlight, given that it comprises AI accelerator sales. In 2024, the segment raked in a record $12.6 billion, or roughly 49% of the total revenue.

The Client segment revenue may have received a boost from a pull forward in demand due to the tariff-related uncertainty. Gartner's research pointed to a 4.8% year-over-year (YoY) increase in first-quarter worldwide PC shipments. 

Investors may also look forward to management commentary regarding the tariff impact on the out-quarters, especially as additional restrictions on China chip exports stymie chipmakers such as AMD and Nvidia.

Cantor Fitzgerald analysts cut their price target for the AMD stock to $120 from $135 on Monday, The Fly reported.

The research firm expects volatility to persist ahead of the potential section 232 Semiconductor restrictions and updates to AI Diffusion rules, as well as amid the U.S.-China trade impasse.

On Stocktwits, retail sentiment toward the AMD stock is 'neutral' (53/100), and the message volume is at 'normal' levels.

The stock was among the top 10 trending tickers on the platform early Tuesday.

A bullish watcher said the AMD stock could sprint to $115 following the earnings print.

On the other hand, another user touted the stock as a "bull trap" — a term used to describe a condition when bulls are trapped in trades based on a misleading signal.

AMD stock ended Monday's session up 1.81% at $100.59, although in Tuesday's early premarket session, the stock edged down 0.65% to $99.94.

The stock is down about 17% year-to-date.

The Koyfin-compiled consensus analysts' price target for AMD stock is $133.98, implying a roughly 33% upside from Monday's close.

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