Why Is Advanced Micro (AMD) Up 18.2% Since Last Earnings Report?

Advanced Micro Devices (AMD) shares have increased 18.2% since its last earnings report, outperforming the S&P 500; however, consensus estimates have trended downward by -47.88% over the past month, resulting in a Zacks Rank #3 (Hold) and expectation of in-line returns in the coming months. In comparison, Seagate (STX), another stock in the same industry, has gained 33.7% over the past month, with revenues up 30.5% year-over-year and EPS expected to increase 133.3% for the current quarter.

Analysis

Advanced Micro Devices (AMD) has demonstrated notable stock price appreciation, gaining 18.2% since its last earnings report and outperforming the S&P 500. However, this positive share movement contrasts sharply with a significant deterioration in analyst expectations, as the consensus estimate has shifted downward by -47.88% over the past month. This divergence is reflected in AMD's VGM Scores: while it scores an 'A' for Growth, it lags with an 'F' in Momentum and a 'D' in Value, culminating in an overall VGM Score of 'D'. Consequently, AMD carries a Zacks Rank #3 (Hold), indicating expectations for an in-line return relative to the market in the coming months. Comparatively, Seagate (STX), a peer in the Zacks Computer - Integrated Systems industry, has experienced a more substantial gain of 33.7% over the past month. Seagate's recent financial performance was robust, with revenues of $2.16 billion in its last reported quarter (ended March 2025), a 30.5% year-over-year increase, and EPS of $1.90, up from $0.33 a year ago. Looking ahead, Seagate is projected to post earnings of $2.45 per share for the current quarter, a 133.3% year-over-year increase, and its Zacks Consensus Estimate has seen a +0.4% upward revision over the last 30 days. Despite these stronger fundamental trends, Seagate also holds a Zacks Rank #3 (Hold) and a VGM Score of 'D'.

Key Decisions for Investors

• Investors should exercise caution regarding AMD's recent 18.2% share price increase, as it is juxtaposed with a substantial -47.88% downward revision in consensus earnings estimates, poor Momentum (F) and Value (D) scores, and a Zacks Rank #3 (Hold) suggesting limited near-term upside.
• Monitoring upcoming earnings announcements and subsequent analyst estimate revisions for AMD is crucial to assess the sustainability of its recent rally and the potential for a pullback.
• While Seagate (STX) exhibits stronger recent financial performance, including a 33.7% stock gain, 30.5% YoY revenue growth, and a +133.3% expected YoY EPS increase for the current quarter, its identical Zacks Rank #3 (Hold) and 'D' VGM score warrant careful evaluation before increasing exposure, focusing on whether its positive operational momentum can translate into sustained stock outperformance.