This article first appeared on GuruFocus.
Shares of Advanced Micro Devices (AMD, Financials) fell on Tuesday after Morgan Stanley’s negative commentary made investors less optimistic before the company’s third-quarter earnings report. Analyst Joseph Moore gave the stock a Hold rating and a price objective of $246, which means that it won’t go up much from its current level. He noted that AMD is in a good position to do well, but its GPU growth may slow down in the short term, even though it plans to release its MI450 AI accelerator next year. Wall Street thinks AMD will make $1.17 per share on $8.76 billion in sales. The company has done better than expected in terms of profitability in six of the last eight quarters and better than expected in terms of revenue in seven of the last eight quarters. This sets the ground for another potentially consistent performance. AMD shares are still up more than 110% in 2025, even after the drop before earnings. This is because to demand from the AI sector and expansion in data centers. The stock has gone up 83% in the last year, which shows that investors are hopeful about its growing importance in high-performance computing.
