AMD

Advanced Micro Devices’ guidance was generally in-line but many were expecting more upside for the business, particularly in its data center segment, says Susquehanna Financial Group’s Christopher Rolland in a research note. The chip maker reported a sharp rise in quarterly sales on demand for its AI chips and other products for data centers. CEO Lisa Su raised her projection for AMD’s sales of AI chips this year to $5 billion from a $4.5 billion forecast in July. “While the company did raise 2024 MI300 revenue guidance to >$5B, we believe the negative stock reaction suggests the $500M raise was largely anticipated by investors,” says Rolland. AMD sinks 10% to $149.71.

At Computex 2024, AMD provided greater insights across its AI hardware capabilities in both data center and PCs. On the accelerator side, AMD introduced an annual cadence (like NVIDIA) where its plans to make the Instinct MI325X available in Q4 (focus on memory capacity with 288GB of ultra-fast HBM3E). AMD also highlighted that the MI350 Series will be available in 2025, with up to 35x AI inference boost versus the MI300 Series, while the MI400 accelerators will launch in 2026. Its Turin EPYC CPUs will be available in the second half of 2024. On the device side, AMD also highlighted its Ryzen AI 300 Series for Copilot+ PCs. Although AMD remains well behind peer NVIDIA, it is expected to generate at least $4B in GPU server revenue in CY 24 during its first full year selling the offering, largely supported by its partnership with Microsoft. We await whether AMD’s GPU

AMD (AMD) reported Q1 non-GAAP earnings Tuesday of $0.62 per diluted share, up from $0.60 a year earlier. Analysts surveyed by Capital IQ expected $0.61. Revenue in the quarter ended March 30 rose to $5.47 billion from $5.35 billion a year earlier. Analysts surveyed by Capital IQ expected $5.45 billion. The company expects Q2 revenue of $5.7 billion, plus or minus $300 million. Analysts surveyed by Capital IQ project $5.69 billion. AMD shares fell 2.9% in recent after-hours activity.

The following is a summary of the Advanced Micro Devices, Inc. (AMD) Q1 2024 Earnings Call Transcript: Financial Performance: AMD reported a Q1 2024 revenue of $5.5bn, an increase from the previous year, with growth driven by data center and client segment sales. The company expanded their gross margin by over 2 percentage points. Data center segment revenue grew by 80% YoY to a record $2.3bn, primarily driven by AMD Instinct MI300X GPU shipments and a double-digit percentage increase in server CPU sales. Client segment revenue increased by 85% YoY on strong demand for their Ryzen processors. Despite YoY revenue declines in Gaming and Embedded segments (48% and 46% respectively), AMD still reported a net YoY revenue increase. Business Progress: AMD is ramping up their data center business and enabling AI capabilities across their product portfolio. The launch of their second-generation Versal adaptive SoCs and Spartan Ultrascale+ FPGA family marks

By Brian Swint AMD stock was falling early Wednesday after disappointing investors on guidance for sales of processors used in data centers. It could be a warning for Nvidia. Both semiconductor makers have benefited from the excitement around artificial intelligence and enjoy strong valuations. That’s based on high expectations for future growth as companies invest in more computing power to run AI software. For AMD, those expectations weren’t met. Even though earnings were in line, its new guidance for data-center chips of $4 billion was seen as lowball. While still higher than the previous estimate of $3.5 billion, some analysts were predicting that it should be much higher. “We are firm believers in AMD’s revitalized product roadmap strategy, and product traction is compelling,” said KeyBanc strategists led by John Vinh. “However, expectations for share gains and growth are high. We’re concerned that any moderate downtick to expectations could add substantial

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target at $200, on P/E of 36.8x our ’25 EPS view, below 5-year historical average/above peers. We adjust our ’24 EPS estimate to $3.54 from $4.10 but keep ’25 at $5.44. AMD posts Q1 EPS of $0.62 vs. $0.60, beating the $0.61 consensus. Sales rose 2% and provided Q2 outlook (+6% Y/Y) largely in line with expectations, as investors were hoping for more amid a strong AI capex environment. Still, Data Center momentum (+80%) remains strong, as it incrementally boosts ’24 GPU server outlook ($4B from $3.5B) given better MI300X visibility from cloud players (Microsoft, Meta, Oracle) and enterprise momentum. Easy comparisons and PC recovery drove Client (+85%), while we expect an enterprise refresh cycle for AI PCs to start in the 2H.

Piper Sandler analyst Harsh V. Kumar reiterated an Overweight rating on Advanced Micro Devices, Inc (NASDAQ:AMD) with a price target of $195. The analyst provided his updated thoughts on AMD, specifically, prospects for the MI300 ramp through the year and commentary around the server business. Kumar maintained that the MI300’s price-to-performance ratio is really strong and is gaining traction, specifically around inference applications. Latency relating to memory performance is paramount for these applications, and Kumar deemed the MI300 is configured to address these issues. Kumar expressed confidence in management’s ability to execute its goals for MI300 targets for this year and 2025. Kumar currently modeled for $4 billion in MI300 revenues for 2024 and $7.6 billion for the 2025 fiscal year. The analyst noted that server CPU inventories have improved significantly after the downturn and subsequent correction in 2023. He said that the segment will grow year-over-year in 2024 despite moves to accelerated

Mizuho analyst Vijay Rakesh maintains Advanced Micro Devices with a Buy and raises the price target from $200 to $235.

Former head of Oak Ridge National Laboratory to accelerate adoption of AMD technologies for sovereign AI deployments benefiting citizens around the world SANTA CLARA, Calif., March 04, 2024 (GLOBE NEWSWIRE) — Today AMD (NASDAQ: AMD) announced that Thomas Zacharia has joined AMD as senior vice president of strategic technology partnerships and public policy. Zacharia will lead the global expansion of AMD public/private relationships with governments, non-governmental organizations (NGOs) and other organizations to help fast-track the deployment of customized AMD-powered AI solutions to meet rapidly growing number of global projects and applications targeting the deployment of AI for the public good. “Thomas is a distinguished leader with decades of experience successfully creating public/private partnerships that have resulted in consistently deploying the world’s most powerful and advanced computing solutions, including the world’s fastest supercomputer Frontier,” said AMD Chair and CEO Lisa Su. “As the former Director of the U.S.’s largest multi-program science

Advanced Micro Devices (NASDAQ:AMD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/20/2024 16.6% Cantor Fitzgerald → $190 Reiterates Overweight → Overweight 02/13/2024 22.74% Mizuho $175 → $200 Maintains Buy 02/12/2024 16.6% Cantor Fitzgerald → $190 Reiterates Overweight → Overweight 02/01/2024 10.46% Goldman Sachs $157 → $180 Maintains Buy 01/31/2024 53.42% Rosenblatt $200 → $250 Maintains Buy 01/31/2024 10.46% Raymond James $195 → $180 Maintains Outperform 01/31/2024 22.74% Wedbush → $200 Reiterates Outperform → Outperform 01/31/2024 19.67% Northland Capital Markets → $195 Upgrades Market Perform → Outperform 01/31/2024 6.78% Truist Securities $154 → $174 Maintains Hold 01/31/2024 16.6% Cantor Fitzgerald → $190 Reiterates Overweight → Overweight 01/31/2024 16.6% Roth MKM $125 → $190 Maintains Buy 01/31/2024 16.6% Wells Fargo $165 → $190 Maintains Overweight 01/31/2024 22.74% Susquehanna $210 → $200 Maintains Positive 01/31/2024 17.83% Citigroup $136 → $192 Maintains Buy 01/31/2024 10.46%

Advanced Micro Devices (NASDAQ:AMD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/13/2024 16.19% Mizuho $175 → $200 Maintains Buy 02/12/2024 10.38% Cantor Fitzgerald → $190 Reiterates Overweight → Overweight 02/01/2024 4.58% Goldman Sachs $157 → $180 Maintains Buy 01/31/2024 45.24% Rosenblatt $200 → $250 Maintains Buy 01/31/2024 4.58% Raymond James $195 → $180 Maintains Outperform 01/31/2024 16.19% Wedbush → $200 Reiterates Outperform → Outperform 01/31/2024 13.29% Northland Capital Markets → $195 Upgrades Market Perform → Outperform 01/31/2024 1.09% Truist Securities $154 → $174 Maintains Hold 01/31/2024 10.38% Cantor Fitzgerald → $190 Reiterates Overweight → Overweight 01/31/2024 10.38% Roth MKM $125 → $190 Maintains Buy 01/31/2024 10.38% Wells Fargo $165 → $190 Maintains Overweight 01/31/2024 16.19% Susquehanna $210 → $200 Maintains Positive 01/31/2024 11.55% Citigroup $136 → $192 Maintains Buy 01/31/2024 4.58% JP Morgan $115 → $180 Maintains Neutral 01/31/2024 4.58% Goldman

Advanced Micro Devices (NASDAQ:AMD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 15.87% Wells Fargo $165 → $190 Maintains Overweight 01/31/2024 18.92% Northland Capital Markets → $195 Upgrades Market Perform → Outperform 01/31/2024 21.97% Wedbush → $200 Reiterates Outperform → Outperform 01/31/2024 9.77% Raymond James $195 → $180 Maintains Outperform 01/31/2024 21.97% Susquehanna $210 → $200 Maintains Positive 01/31/2024 52.46% Rosenblatt $200 → $250 Maintains Buy 01/31/2024 17.09% Citigroup $136 → $192 Maintains Buy 01/31/2024 9.77% JP Morgan $115 → $180 Maintains Neutral 01/31/2024 9.77% Goldman Sachs $157 → $180 Maintains Buy 01/31/2024 64.66% Keybanc $195 → $270 Maintains Overweight 01/30/2024 21.97% Rosenblatt → $200 Reiterates Buy → Buy 01/30/2024 18.92% Raymond James $190 → $195 Downgrades Strong Buy → Outperform 01/29/2024 15.87% Cantor Fitzgerald → $190 Reiterates Overweight → Overweight 01/29/2024 17.7% Morgan Stanley $128 → $193 Maintains Overweight 01/29/2024