Advanced Micro Devices Issues Weak Sales Outlook

At least nine analysts slashed their price targets

Deputy Editor
Nov 1, 2023 at 9:29 AM
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Semiconductor concern Advanced Micro Devices, Inc. (NASDAQ:AMD) today reported third-quarter earnings and revenue that beat analysts expectations. The shares are down 0.9% before the bell, however, after the company issued weaker-than-expected revenue for the fourth quarter.

Despite the fact that the chipmaker is one of the only companies capable of producing the type of graphics processing units (GPUs) for training and deploying generative AI models -- a unit that could see sales exceed $2 billion next year, according to AMD -- analysts are wary of the warning.

No less than nine analysts slashed their price targets on Advanced Micro Devices stock, with several adjusting down to $130, though Truist Securities moved all the way down to $98. Meanwhile, Bernstein raised its price target to $100 from $95.

The security's 12-month consensus price target still sits at $130.62 and is a 32.6% premium to last night's close, which means more price-target cuts could be on the way. What's more, of the 28 analysts in coverage, 22 say "buy" or better, so some downgrades could be on the way. 

Heading into November just off a three-month losing streak that saw the security shed 16.2%, AMD is set to open at around $98.50. The equity's annual lows sit at the $60 level, so it still maintains a more than 50% year-to-date lead, but Advanced Micro Devices stock is being pressured lowered by its 10-day moving average.

 

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