Bernstein analyst Stacy Rasgon maintained a Hold rating on Advanced Micro Devices today and set a price target of $200.00.
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Stacy Rasgon’s rating is based on a combination of factors that reflect both the strengths and challenges faced by Advanced Micro Devices (AMD). The company’s Q3 results were strong, with revenues surpassing expectations in several segments such as Datacenter, Client, and Gaming, although Embedded fell short. However, the overall profitability was constrained by higher-than-expected operating expenses, which tempered the positive revenue performance.
Furthermore, while the Q4 revenue outlook remains robust, the earnings per share guidance fell slightly below market expectations, with operating expenses continuing to exceed forecasts. The market dynamics, including a competitive environment and recent performance trends, suggest that while there are positive developments, particularly in core markets, there are also concerns about spending trends and inventory risks. Given the stock’s significant rise in recent months and its current valuation, Rasgon maintains a Hold rating as the market awaits further developments, such as the potential impact of OpenAI’s growth next year.
Rasgon covers the Technology sector, focusing on stocks such as Intel, Applied Materials, and Advanced Micro Devices. According to TipRanks, Rasgon has an average return of 29.1% and a 68.75% success rate on recommended stocks.
In another report released today, Citi also maintained a Hold rating on the stock with a $260.00 price target.