AMD price target lowered to $175 from $195 at Piper Sandler

Piper Sandler lowered the firm’s price target on AMD to $175 from $195 and keeps an Overweight rating on the shares. The firm notes AMD reported a largely in-line quarter with revenue guidance for June that was also in-line with estimates. That said, the parts of the business that matter in Piper’s view, namely MI300 and the server business, did exceedingly well and continue to get better. Most of the headwinds to the model are coming from the gaming and embedded businesses, says the firm. Gaming is currently going through a correction while embedded is very close to stabilization in Q2 and expected to pick up in the second half of 2024. Piper feels AMD continues to deliver on its core businesses that investors care about with headwinds from non-core pieces.