AMD Shares Stumble After Q1 Reveal: A Rollercoaster Of Analyst Perspectives Emerges

Shares of Advanced Micro Devices, Inc. AMD continued to tank in early trading on Wednesday, despite the company reporting upbeat quarterly results.

Here are some key analyst takeaways from the earnings call.

Susquehanna On Advanced Micro Devices

Analyst Christopher Rolland reiterated a Positive rating, while raising the price target from $115 to $120.

Although the company’s second-quarter guidance was below Wall Street expectations, “a reacceleration is expected in 2H,” Rolland said in a note.

“Perhaps most meaningful from the call, CEO [Lisa] Su suggested that the pipeline for MI300 has expanded considerably,” the analyst wrote. “And while we thought 2H was all about El Capitan, management also expects initial cloud ramps for both training and LLM inferencing,” he added.

Raymond James On Advanced Micro Devices

Analyst Srini Pajjuri reaffirmed a Strong Buy rating, while reducing the price target from $115 to $110.

Shares of Advanced Micro Devices fell in the aftermarket due to an “unfavorable mix, as Data Center segment fell short of expectations while Gaming and Embedded segments fared better,” Pajjuri said.

“Despite the slow start, management is projecting double-digit growth in Data Center this year, which we believe is achievable on the back of share gains, new CPU ramps, and El Capitan supercomputer builds,” the analyst wrote.

“More importantly, the company appears to be making progress in AI/ML, which could unlock significant TAM (and multiple) expansion,” he added.

KeyBanc Capital Markets On Advanced Micro Devices

Analyst John Vinh maintained an Overweight rating and price target of $110.

Advanced Micro Devices reported “solid” first-quarter results and guided lower for the second quarter, “given weak PC and data center,” Vinh stated.

“Weakness in data center was attributed primarily to enterprise but also cloud, but it still anticipates DD% server growth in 2023 (implies 2H vs. 1H growth of ~50%) given the ramp of Genoa/Bergamo and MI300,” the analyst wrote. He added that the outlook for the back half of the year is encouraging.

Check out other analyst stock ratings.

Benchmark On Advanced Micro Devices

Analyst Cody Acree reiterated a Buy rating and price target of $108.

“While AMD is still dealing with an uncertain global macroeconomic environment, based on customer order activity, the company is confident that the March quarter will mark the bottom for its PC and Data Center businesses, which are expected to grow sequentially in the June quarter,” Acree wrote in a note.

“Unfortunately, on a continued inventory correction, the company is expecting its Gaming and Embedded segments to decline modestly in the June quarter, offsetting the sequential growth projected in Client and Data Center sales,” he added.

Bernstein On Advanced Micro Devices

Analyst Stacy Rasgon maintained a Market Perform rating and price target of $80.

“AMD's Q1 results were decent at first glance ($5,353/$0.60 vs Street $5,310M/$0.57), however Data Center significantly missed, as did client (which reached extremely low levels on channel inventory flush); gaming and embedded came in above consensus,” Rasgon wrote in a note.

“Right now relying on a big 2H data center ramp doesn't feel great, but the alternative isn't all that palatable either,” she added.

Wedbush On Advanced Micro Devices

Analyst Matt Bryson reaffirmed an Outperform rating and price target of $95.

“AMD results almost exactly paralleled the company's initial guide. The surprise rather was how they got to their sales target with strength in embedded and their game console business offsetting further weakness in PCs and enterprise compute,” Bryson said.

“We view the extent of AMD's enterprise CPU Q/Q decline and the modestly softer Q2 guide as the primary factors causing AMD's stock to sell-off post earnings results,” he added.

AMD Price Action: Shares of Advanced Micro Devices had declined by 8.5% to $82.26 at the time of publishing Wednesday.