Vivek Arya, an analyst from Bank of America Securities, maintained the Hold rating on Advanced Micro Devices (AMD – Research Report). The associated price target remains the same with $105.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Vivek Arya has given his Hold rating due to a combination of factors impacting Advanced Micro Devices’ (AMD) performance and outlook. While AMD is expected to report a strong first quarter, driven by robust server CPU sales and gains in desktop PC market share, the company faces significant challenges in the upcoming quarters. The primary concern is the anticipated impact of China’s restrictions on AMD’s MI308 products, which is expected to result in a substantial sales headwind and a decline in gross margins for the second quarter.
Despite AMD’s consistent execution and reasonable valuation, the competitive landscape presents additional hurdles. The company is facing strong competition from NVIDIA and custom-chip manufacturers, particularly in the AI GPU market, where AMD’s current offerings are not as competitive. Furthermore, while AMD has shown growth in the PC segment, its market share is expected to plateau due to increasing competition from ARM-based products and potential gains by Intel. These factors contribute to Arya’s decision to maintain a Hold rating, as the positive aspects are balanced by significant risks and uncertainties.
Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Cadence Design. According to TipRanks, Arya has an average return of 11.0% and a 51.92% success rate on recommended stocks.
In another report released on April 21, Bernstein also maintained a Hold rating on the stock with a $95.00 price target.