AMD Hold Rating: Financial Adjustments and Cautious Outlook Impact EPS Estimates

KeyBanc analyst John Vinh has maintained their neutral stance on AMD stock, giving a Hold rating yesterday.

John Vinh has given his Hold rating due to a combination of factors impacting Advanced Micro Devices. One significant reason is the adjustment in the company’s financial outlook, specifically the reduction in the second quarter of 2025 gross margin from 54% to 43%, which accounts for approximately $800 million in charges related to the MI308 write-off. This adjustment aligns with the consensus estimates, which now include these charges, leading to a revised earnings per share (EPS) estimate of $0.47, down from the previous $0.90, and below the consensus of $0.57.
Additionally, the full-year 2025 EPS estimate has been lowered to $3.80 from $4.23, which is also below the consensus of $3.95. These financial adjustments reflect a cautious outlook on AMD’s near-term performance, contributing to the Hold rating. Despite a year-to-date price change of -3.8%, the company’s substantial cash reserves of $5,132 million provide some stability, yet the financial revisions suggest a balanced view, warranting neither a strong buy nor sell recommendation at this time.

In another report released yesterday, Citi also reiterated a Hold rating on the stock with a $120.00 price target.

AMD’s price has also changed slightly for the past six months – from $130.870 to $121.730, which is a -6.98% drop .