Latest news with #LynxEquityStrategies
Yahoo
5 days ago
- Business
- Yahoo
Top Analyst Warn AMD AI Hype May Outpace Reality
Aug 5 - Advanced Micro Devices (NASDAQ:AMD) is riding an 80% rally over the past three months, but Lynx Equity Strategies thinks the stock may be moving too fast for its fundamentals to keep up. Analyst KC Rajkumar raised concerns in a recent note, cautioning that AMD's rise largely rests on high expectations surrounding its MI350/MI355 GPUs and the upcoming MI400X. Warning! GuruFocus has detected 6 Warning Signs with AMD. According to Rajkumar, many investors assume AMD has won key design wins with hyperscalers like Meta Platforms (NASDAQ:META) and Amazon Web Services, but he questions whether AWS has truly adopted AMD's chips. Without AWS, AMD could be leaning too heavily on Meta, he warned. Lynx isn't convinced about the near-term adoption of AMD's GPUs in data centers, despite some analysts forecasting over 30% revenue growth in 2025. The firm also doubts whether AMD's resumed MI308 shipments to China will deliver much upside, considering Beijing's restrictions on chip imports, already affecting Nvidia (NASDAQ:NVDA). Rajkumar sees downside risk, suggesting a $150 price target if consensus EPS for 2026 lands around $6. He believes AMD may have priced in years of growth that haven't materialized yet. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Tech analyst warns AMD stock has run ahead of itself as company prepares to report
-- Lynx Equity Strategies issued a cautious note on AMD (NASDAQ:AMD) ahead of its earnings release, warning that the stock's sharp rally may be outpacing the company's fundamentals. 'AMD's ~80% rise over 3 months has several assumptions built into it,' wrote KC Rajkumar of Lynx Equity Strategies. Chief among them is said to be the belief that AMD's MI350/MI355 and upcoming MI400X GPUs have secured broad adoption from hyperscalers like Meta (NASDAQ:META) and potentially AWS. But according to Rajkumar, 'we doubt if AMD has bagged share at AWS… Without AWS, AMD may be dependent on one key backer – META.' While some analysts are forecasting over 30% revenue growth in calendar 2025, Lynx warned that 'investors are yet to see tangible signs of MI350/MI355 adoption at hyperscale data centers this year.' The firm stated that expectations AMD will grow earnings per share to $7.50–$8.00 by 2027 and justify $200 price targets are based on 'hype built into Street expectations.' Lynx also questioned the significance of AMD resuming shipments of its MI308 chip to China, noting that China's internet regulator may apply the same import restrictions to AMD as it has to Nvidia (NASDAQ:NVDA). The firm's valuation analysis implies downside risk. 'Based on 25x multiple over Cy26 consensus EPS of ~$6, we think the stock is likely to test the $150 price level,' the note said. Rajkumar concluded: 'We think the stock has discounted multiple years of strong revenue growth and may have run ahead of itself.' Related articles Tech analyst warns AMD stock has run ahead of itself as company prepares to report Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names 7 Undervalued Stocks on the Rise With 50%+ Upside Potential
