Following the market’s close on Tuesday, April 30, the stock of Advanced Micro Devices (NASDAQ: AMD) – on of the main semiconductor firms in the world and Nvidia’s (NASDAQ: NVDA) competitor in the artificial intelligence (AI) chip race – took a significant extended trading hit after releasing its earnings report for the first quarter of 2024.
While AMD managed to slightly beat expectations and logged $0.62 earnings-per-share (EPS) compared to the estimated $0.61 and revenue of $5.47 against the forecast $5.46, investors were not impressed.
One of the main reasons cited for the reception – and indeed one that drove recent analyst rating revisions – are the mostly mixed conditions, despite the continuation of the AI boom.
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Analysts revise AMD stock ratings
The recent period saw a string of adjustments to the rating of AMD stock with Susquehanna offering the most recent – and bearish – adjustment. According to the firm’s analysts, the semiconductor blue chip is no longer expected to hit $200 within 12 months but rather $185.
Susquehanna, however, reiterated its positive outlook for the long-run, despite cutting the target.
Just days earlier, Bank of America (NYSE: BAC) offered a similar assessment explaining that the ongoing quarter is unlikely to be pivotal for the cautiously expected boom, though it added that AMD’s long-term prospects are strong and retained the $195 target.
The banking giant also stated it expects strong server growth to offset a PC market slump.
The latter prediction was seemingly proven partially false on the bullish side, given that AMD reported $1.4 billion in first-quarter sales for its PC business – an impressive 85% annual increase – though its gaming division remains weak and shrunk 48% year-over-year (YoY).
AMD stock price chart
With AMD stock price today standing at $147.67 after taking the post-earnings hit that, by press time, amounts to 6.76% and comes at the heels of a 1.14% drop during the latest full session that brought it to $158.38, it is evident investors were not impressed with the most recent release.
Nonetheless, the chip maker’s longer-term performance remains fairly strong. Since 2024 began, AMD is up 14.29% despite the more recent downtrend which saw it drop 13.61% during the last 30 days in the stock market.
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