AMD price target raised to $270 from $195 at KeyBanc

KeyBanc raised the firm’s price target on AMD (AMD) to $270 from $195 and keeps an Overweight rating on the shares after the company posted in line Q4 results and guided Q1 lower. While Data Center GPUs exceeded Q4 guidance of $400M with 2024 expectations raised to $3.5B from $2B, this was offset by weak traditional server demand, continued destocking in Embedded, and weak Gaming, the firm says. Additionally, AMD noted it’s ramping MI300X with Microsoft (MSFT), Oracle (ORCL), and Meta Platforms (META) and has enough capacity and demand to well exceed its updated $3.5B target. While disappointed with non-GPU results, KeyBanc is “encouraged” with the strong GPU revs and commentary.