Shares of Advanced Micro Devices (NASDAQ:AMD) tumbled at the time of writing despite a second-quarter report and guidance that wowed Wall Street. Analysts particularly noted advancements in the artificial intelligence (AI) and PC sectors. Citi’s Christopher Danely, who recently had AMD on a negative watch, upgraded the stock to buy, acknowledging he was wrong about AMD’s AI products being margin dilutive. During the earnings call, AMD’s CEO Lisa Su highlighted that AI customer engagements grew sevenfold, with “very high” interest in the MI 250 and MI 300 accelerators.
Several analysts offered mixed views on the results. J.P. Morgan’s Harlan Sur kept a neutral rating but raised his price target to $130, praising the company’s strong innovation and potential to capitalize on the $150B AI opportunity. KeyBanc’s John Vinh pointed to a mixed quarter with softer server numbers but still expected a significant ramp-up in the fourth quarter, aided by specific product lines. However, Wedbush’s Matt Bryson described the results as “just okay” and the guidance as “arguably disappointing,” yet he raised his price target to $155, believing that investors might overlook these weaknesses as gains are expected to accelerate in the coming years.
Is AMD a Buy, Sell, or Hold?
Overall, analysts have a Strong Buy consensus rating on AMD stock based on 25 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. In addition, the average price target of $139.26 per share implies 23.87% upside potential.
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