Morgan Stanley: Rised AMD (NASDAQ:AMD) price target to $87 from $77 with an overweight rating

Morgan Stanley published a research report that AMD (NASDAQ:AMD) has a weak outlook, with data center businesses falling by double digits quarter-on-quarter and gross margin lower than expected. In a challenging environment, Dama still believes that this is better than feared. The bank’s revenue forecast for fiscal 2023 remained largely unchanged, but gross margin was lowered. AMD data center limited visibility into customer inventory levels will improve the data center’s risk profile, but given its strong market share, the bank raised its group price target to $87 with an overweight rating. The bank expects the group’s first-quarter revenue of US$5.317 billion, non-GAAP gross margin of 50%, non-GAAP operating profit of 20% and earnings per share of US$0.57.

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