AMD price target lowered to $175 from $200 at Citi

Citi lowered the firm’s price target on AMD (AMD) to $175 from $200 and keeps a Buy rating on the shares as part of a Q4 earnings preview. The firm expects semiconductor consensus estimates to decline during the Q4 earnings season, driven by lower estimates from analog companies and “sluggish demand” from the PC, automotive, and industrial end markets. On the positive side, demand from the data center, artificial intelligence, and communication end markets “should be solid,” the analyst tells investors in a research note. Citi continues to expect inventory replenishment “at some point” in the analog space given an average of 30% decline in sales. It is most positive on AMD during earnings due to upside from AI sales.