AMD AI event ‘did not really break new ground,’ says Morgan Stanley

Morgan Stanley says the “AMD AI” event featured an “impressive breadth of endorsement of its MI300 architecture,” including endorsements for MI300 from Microsoft (MSFT), Oracle (ORCL), Meta (META) and others. However, for the stock to trade higher after already moving up 25% since earnings, AMD needed to define the Microsoft role more than it did and the event “did not really break new ground in defining the company’s role,” the analyst tells investors. What the firm has heard from customers evaluating the product is that AMD is supplying cost-effective inference capability, while lacking the software and ecosystem support that Nvidia (NVDA) can provide, added the analyst, who keeps an Overweight rating and $128 price target on AMD shares.