Here's Why Advanced Micro Devices (AMD) is a Strong Momentum Stock

Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market in the short term [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, and Price/Sales, focusing on undervalued stocks [4] Growth Score - The Growth Score assesses stocks based on projected earnings, sales, and cash flow, targeting companies with sustainable growth potential [5] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator for stock selection alongside the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.83% since 1988, outperforming the S&P 500 [8][10] - A large pool of stocks is available, with over 800 top-rated options, making the Style Scores essential for narrowing down choices [9] Stock Analysis: Advanced Micro Devices (AMD) - AMD generated revenues of $34.64 billion in 2025, with its operations divided into three segments: Data Center (48%), Client and Gaming (42%), and Embedded (10%) [12] - AMD holds a 3 (Hold) Zacks Rank and a VGM Score of B, with a Momentum Style Score of A, indicating strong performance potential [12][13] - Recent analyst revisions have positively impacted AMD's earnings estimates, with a consensus estimate increase of $0.32 to $6.59 per share and an average earnings surprise of +6% [13]