AMD earnings preview: what to expect from Q4 2024 results
Advanced Micro Devices (AMD) reports Q4 earnings on February 4, 2025. Here's what analysts expect and key areas investors will be watching.
AMD Q4 earnings expectations
Advanced Micro Devices (AMD) is set to report its fourth quarter (Q4) and full-year 2024 results after the US market closes on February 4, 2025. The company will host an earnings call at 5:00 pm EST to discuss the results.
Analysts anticipate quarterly revenue of approximately $7.5 billion, continuing the growth trend seen in quarter three (Q3) when AMD reported revenue of $6.82 billion, up 17.6% year-over-year (YoY).
The expected non-GAAP gross margin of 51.5% would reflect AMD's continued focus on high-performance computing and artificial intelligence (AI) solutions. This metric is crucial for understanding the company's profitability and competitive position.
These projections come after AMD met market expectations in Q3 2024 with adjusted earnings per share (EPS) of $0.92.
Data centre and AI developments
The Data Center segment is expected to be a key growth driver for AMD's Q4 results. This division has benefited from increasing demand for AI-capable processors.
Recent industry developments, including the emergence of DeepSeek's cost-effective AI assistant R1, have intensified competition in the AI chip market. This could impact AMD's market position and pricing power.
Investors will closely monitor AMD's progress in gaining share of the AI chip market, particularly in comparison to rival NVIDIA's dominant position.
Commentary on AMD's MI300 accelerator adoption and its competitive positioning will be crucial for market sentiment.
Market expectations and competition
Wall Street analysts will focus on AMD's guidance for 2025, particularly regarding AI-related revenue projections. The company faces heightened competition in this rapidly evolving sector, not just from its US peers but also from China.
The emergence of new players and technologies, such as China’s DeepSeek's efficient AI models, could influence the competitive landscape and pricing dynamics in the semiconductor industry.
AMD's ability to maintain its growth trajectory while competing with established players like NVIDIA and emerging technologies will be scrutinised by investors. This includes both technical capabilities and cost-effectiveness.
Market participants will look for updates on AMD's product roadmap and strategy for maintaining competitiveness in the AI chip market.
AMD analyst and TipRanks Smart Score ratings
According to LSEG Data & Analytics, analysts rate the AMD share as a ‘buy’ with 12 ‘strong buy’, 24 ‘buy’, 14 ‘hold’ and 1 ‘sell’, one analyst having downgraded the stock from ‘buy’ to ‘hold’ following Monday’s US tech sell-off (as of 29/01/2025).
AMD’s TipRanks Smart Score of ‘4 Neutral’ has also been lowered to ‘3 Underperform’ since Monday but is still rated as a ‘buy’ by analysts with 21 ’buy’, 10 ‘hold’ and 1 ‘sell’ recommendation, unchanged since earlier this week (as of 29/01/2025).
Technical outlook of the AMD share price
AMD's share price performance has shown significant volatility leading up to earnings, reflecting broader market uncertainty about AI chip demand and AI competition from China.
AMD versus peers 5-day share price performance comparison chart
The stock's reaction to earnings could set the tone for semiconductor sector performance in early 2025. Technical analysts are watching a key support zone, made up of the 200-week simple moving average (SMA) at $115.29 and the mid-January low at $114.41 to see whether these can hold on a weekly chart closing basis.
AMD weekly candlestick chart
A weekly chart close below the mid-January $114.41 low would put the May 2022 peak at $109.50 and also the August 2022 and March 2023 highs at $104.59-to-$102.43 on the map.
For a bullish reversal to be seen, a rise and weekly close above the 22 January high at $125.65 would need to occur. Only then would the 55-day SMA at $130.11 and the early January high at $131.71 be in sight.
AMD daily candlestick chart
A rise above the current January high at $131.71, though less likely than a further decline in the AMD share price, could lead to the 200-day SMA and November peak at $148.68-to-$150.71 being reached over the coming months. En route lies the December peak at $144.12 which may offer interim resistance.
As long as no advance above the early January high at $131.71 is seen, the October-to-January downtrend remains intact.
Trading volumes have increased ahead of the announcement, suggesting strong market interest in the US technology sector and in AMD's quarterly performance.
How to trade AMD earnings
- Research AMD and the semiconductor sector thoroughly
- Choose whether you want to trade or invest
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- Place your trade with appropriate risk management
Keep in mind that earnings releases can cause significant market volatility. Consider using risk management tools and maintaining appropriate position sizes when trading around major market events.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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