<div id="readability-page-1"><p>Chipmaker Advanced Micro Devices (AMD) is scheduled to announce its results for the first quarter of 2026 on May 5. AMD stock has rallied more than 68% year-to-date and 258% over the past year.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>Ahead of it, AMD is facing a more cautious view from top HSBC analyst Frank Lee. While the stock has rallied strongly over the past year, the top analyst believes much of the upside is already priced in. He downgraded AMD to Hold from Buy, pointing to stretched valuation given the company's current production limits.</p> <p>For context, Wall Street expects AMD to report EPS (earnings per share) of $1.28, reflecting 33.3% year-over-year growth. Revenue is expected to rise about 33% to $9.9 billion.</p> <h2><strong>Why the Analyst Downgraded AMD Stock</strong><strong></strong></h2> <p>Lee's main concern is AMD's high valuation. He noted that AMD has &#34;re-rated sharply,&#34; with its valuation rising from about 19x its estimated 2027 earnings to around 33x. At these levels, he believes most of the positive outlook is already reflected in the stock.</p> <p>Furthermore, Lee pointed to capacity constraints as a key challenge. Even with strong demand for AI chips, limited supply could cap growth and make it harder for the company to exceed earnings expectations.</p> <p>Despite the downgrade, Lee slightly raised his price target to $340 from $335, based on a higher earnings multiple. He believes that AMD's fundamentals remain solid, but the recent rally leaves limited room for further gains in the near term.</p> <h2><strong>Is AMD Stock a Buy, Hold, or Sell?</strong></h2> <p>Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 17 Buys and nine Holds. Following a solid rally, the average AMD stock price target of $308.09 indicates 15% downside risk.</p></div>

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<p>Chipmaker AMD is set to announce Q1 2026 results on May 5. Despite a 68% year-to-date rally, HSBC analyst Frank Lee downgraded AMD to Hold from Buy, citing stretched valuations and production limits. He raised the price target to $340, indicating limited near-term gains. Wall Street expects EPS of $1.28 and revenue of $9.9 billion, but the average price target suggests a 15% downside risk.</p>

- Advanced Micro Devices (AMD) will announce its Q1 2026 results on May 5, with EPS expected at $1.28 and revenue at $9.9 billion.  
- Despite a year-to-date stock increase of over 68%, HSBC analyst Frank Lee downgraded AMD to Hold, citing high valuation and production constraints as major concerns.  
- Wall Street has a Moderate Buy consensus for AMD, but the average price target of $308.09 suggests a potential 15% downside risk for investors.

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Earnings Eve Warning: Top Analyst Downgrades AMD Stock on Valuation Concerns, Sees 5%+ Downside Risk