AMD (Nasdaq: AMD)) May represent micro advanced devices, but among a blasé investor base, it is sometimes called “destroying advanced money” due to its recent performance of Terna Action Course.
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Additional evidence of the reason why this pungent nickname sounds true Wednesday, while actions slipped 6% after the release by the chip giant of its 4T24 results and perspectives. The stock is now down 34% in the last 12 months.
The fact is that the results of AMD were actually quite good, with a particularly strong performance of the PC segment, a beat on the upper line and adj. EPS. He also did not weaken with the prospects, because the income guide of the first quarter exceeded the expectations of the street.
So why the sale? The disappointment centered in an area investors hoped to see significant progress – Data Center, the crucial segment housing AMDs IA Flea sales. While revenues jumped 69% in annual shift to 3.86 billion dollars, which marked a significant slowdown compared to the growth of 122% of the quarter and did not reach the target of 4.14 billions of dollars of analysts.
In addition, AMD did not offer GPU advice at AI for the year, although it expects a first half of 2025, with stronger growth in the second half driven by the MI350 ramp.
For Vivek Arya of Bank of America, an analyst who ranks in the 2% of Wall Street shares, there was quite a bit to love in reading.
“AMD continues to deliver the execution of the products, with its 5th generation Epyc processors and its GPU DC MI325 now, and its PC processors regularly win against outgoing intc,” commented the 5 -star analyst.
The launch of the new generation MI350 GPU was also presented in mid-2025, but Arya notes that the AMA portfolio of AMD is still lagging around for approximately a year, Nvidia still holding a market share 80 to 85%.
And this is where the problem lies. Although the Mi350 has advanced the MI350.
“With NVDA continuing to execute and personalized ASIC which apparently earn more traction in hyperscalers, we think it could be difficult for AMD to” win “the story of AI despite the absolute growth rate of AA “said Arya in addition. “Second, a growing exhibition of non-AI and cyclic and games PC could help loudspeakers but be a front of the margins.”
Thus, the great ambition to become the next NVIDIA – or even a close competitor – begins to fade, and Arya advises investors to stay on the sidelines. The AMD rate analyst shares a neutral with a price target of $ 135, which implies an increase of ~ 23%. However, in his opinion, the risk simply is not worth the reward. (To look at the history of Arya, Click here))
Overall, 10 other analysts join Arya on the AMD fence, but with 22 additional purchases and 1 sale, the action has a moderate purchase consensus rating. Forecasts suggest yields of approximately 35%, as the average target amounts to $ 148.28. (See Forecast of AMD actions))
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Warning: The opinions expressed in this article are only those of the featured analyst. Content is intended to be used for information only. It is very important to do your own analysis before investing.