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Analysts revise AMD stock price targets after earnings

Analysts revise AMD stock price targets after earnings

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.

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.

AMD stock 1-day and Wednesday pre-market price chart. Source: Google

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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