AMD’s stock price target was cut by Cantor Fitzgerald ahead of its fourth-quarter earnings release, with data center revenues expected to remain below consensus. This move follows several other investment banks’ bearish views on the company’s prospects.
Analysts at Bank of America and Goldman Sachs have slashed AMD’s prices, citing constrained supplies of NVIDIA’s Blackwell GPUs as a factor that could increase demand for custom AI chips from Marvell and Broadcom, reducing market availability for AMD’s products. They also expect a tighter PC market in 2025 but believe AMD might grow revenue by 15-20% annually by capitalizing on Intel’s weakness.
HSBC has reduced its share price target to $110 from $200, citing that AMD’s AI GPU roadmap is less competitive than expected, limiting penetration into the AI GPU market. Wolfe Research also warns that AMD won’t be able to dominate AI in CY25, driving concerns among analysts.
Cantor Fitzgerald keeps an Overweight rating on AMD but reduces its share price target to $135 from $150, expecting a Q4 beat and a Q1 miss, with estimated 2025 data center GPU revenue falling below consensus. Data center revenues have grown by $2 billion in the Q3 earnings report.
Source: https://wccftech.com/amd-price-target-slashed-by-investment-bank-ahead-of-q4-earnings