Barclays: AMD Overadjusted, Maintains "Overweight" Rating
Barclays released a research report stating that it maintains an "overweight" rating on AMD, but has lowered the target price from $235 to $180. Both AMD and Intel will announce their second-quarter results this week. The bank believes that while Intel's "threshold to cross is lower," AMD may have "over-adjusted." Analysts generally expect AMD to have earnings per share of $0.68 and revenue of $5.72 billion in the second quarter. In contrast, analysts expect Intel to have earnings per share of $0.10 and revenue of $12.98 billion for the quarter. Analyst Tom O'Malley said, "As investors seek to be more cautious in choosing AI investments and favor cyclical/mid-term growth stocks, AMD has given back all its gains for the year." "The sales expectation for MI300 this year is $5 billion, which we believe is achievable." O'Malley acknowledged that AMD may experience some weakness in specific areas such as personal computers, Radeon business, and gaming, but "stocks at these levels still have value."
According to the Zhitong Finance and Economics APP, Barclays released a research report stating that it maintains a "hold" rating on AMD (AMD.US), but has lowered the target price from $235 to $180.
Both AMD and Intel will announce their second-quarter performance this week. The bank believes that although Intel has a "lower hurdle to cross," AMD may have "over-adjusted." Analysts generally expect AMD to have earnings per share of $0.68 and revenue of $5.72 billion in the second quarter. In contrast, analysts expect Intel to have earnings per share of $0.10 and revenue of $12.98 billion for the quarter.
Analyst Tom O'Malley stated, "As investors seek to choose AI investments more cautiously and favor cyclical/mid-term growth stocks, AMD has given back all its gains for the year." "The sales expectation for MI300 this year is $5 billion, which we believe is achievable."
O'Malley acknowledged that AMD may experience some weakness in specific areas such as personal computers, server business, and gaming, but "stocks at these levels still have value."