Barclays: AMD (AMD.US) Over-adjusted, Maintain "Overweight" Rating
1min read Barclays released a research note, maintaining an "overweight" rating on AMD (AMD.US), but lowering its target price from $235 to $180.
Amd and Intel will both report their Q2 earnings this week, and the firm believes that while Intel "has a low bar to clear", AMD may be "over-adjusting". Analysts generally expect AMD to report earnings per share of $0.68 on revenues of $5.72bn, while analysts expect Intel to report earnings per share of $0.10 on revenues of $12.98bn.
Tom O'Malley, an analyst, said "AMD has given up all of its 2023 gains as investors look to be more cautious about AI investments and more bullish on cyclical/mid-cycle growth stocks". "We think the MI300's $5bn sales target for this year is achievable".
O'Malley acknowledged that AMD may see some softness in certain areas such as personal computers, Xilinx business and gaming, but "the stock still has value at these levels".