AMD price targets slashed across Wall Street after lackluster results
Beating Intel doesn’t mean much if you’re not coming close to competing with Nvidia.
That’s the message out of Wall Street strategists following earnings from Advanced Micro Devices, with the stock down about 9% as the chipmaker’s data center revenues disappointed.
The logic behind the pessimistic views looks pretty simple: across the industry, data centers are the fastest-growing source of revenue. You command a premium valuation by being exposed to fast-growing parts of the market. AMD doesn’t command as much market share in data centers as analysts had been hoping for, so that means not only will earnings likely grow a little slower, but the price-to-earnings multiple might also come under pressure.
“For the critical AI GPU segment, we now model $7.5 billion for calendar year 25 estimates, slightly below $8 billion prior,” wrote Bank of America analysts led by Vivek Arya. “AMD did not guide AI GPU for the year.”
BofA lowered its price target on the stock to $135 from $155 following this quarterly report.
Some more post-earnings price target cuts (see below):
to $120 from $150 at Deutsche Bank
to $125 from $150 at Bernstein
to $130 from $145 at Truist
to $140 from $180 at Piper Sandler
to $140 from $160 at Mizuho Securities
to $150 from $180 at Raymond James
to $150 from $165 at Susquehanna
to $162 from $200 at Stifel
to $170 from $200 at Benchmark
to $225 from $250 at Rosenblatt Securities Inc.
to $120 from $150 at Deutsche Bank
to $125 from $150 at Bernstein
to $130 from $145 at Truist
to $140 from $180 at Piper Sandler
to $140 from $160 at Mizuho Securities
to $150 from $180 at Raymond James
to $150 from $165 at Susquehanna
to $162 from $200 at Stifel
to $170 from $200 at Benchmark
to $225 from $250 at Rosenblatt Securities Inc.
