From Financial Modeling Prep: 2025-01-16 12:01:00

Wolfe Research downgraded Advanced Micro Devices (AMD) from Outperform to Peer Perform due to concerns over datacenter GPU revenue growth. Analysts now expect AMD’s datacenter GPU revenue to reach $7 billion in 2025, a significant reduction from the previous forecast of $10 billion. The company is not expected to provide specific guidance for its datacenter GPU business in the upcoming earnings call, adding uncertainty to its prospects.

AMD currently trades at 28 times the revised 2025 earnings per share estimate of $4.19, slightly below its five-year average price-to-earnings ratio of 31x. In comparison, NVIDIA trades at 32x 2025 EPS estimates, reflecting a smaller discount relative to its five-year average of 37x.



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