Latest news with #MI355
Business Insider
3 days ago
- Business
- Business Insider
Why Are Some Analysts Cautious on AMD Stock Despite AI Hype?
Chipmaker Advanced Micro Devices (AMD) recently reported its results for the second quarter of 2025, which failed to live up to investors' expectations. While AMD's Q2 revenue surpassed the Street's estimates, its earnings were in line with expectations, with investors concerned about the decline in artificial intelligence (AI) business revenue. Many analysts maintained their bullish stance on AMD stock after the Q2 print. However, some analysts expressed concerns about AMD's AI/data center revenue and higher expenses. In fact, Wall Street's average price target indicates a limited upside potential from current levels. AMD stock has rallied 43% so far this year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Heading into Q2 results, the hype around AMD's AI business was very high, especially after the Advancing AI event. AMD highlighted its new GPUs (graphics processing units), which revived investors' hopes about the company's prospects after persistent concerns about it lagging behind rival Nvidia (NVDA) in the AI race. However, AMD's Q2 results, especially the data center business growth and AI business revenue decline, disappointed investors. AMD cited U.S. export restrictions that eliminated MI308 sales to China and the transition to its next-generation chips as the reasons for the decline in Q2 AI business revenue. AMD's Q2 Results Draw Some Concerns Despite the mixed Q2 results, AMD bulls are confident about the company's potential to grow in both CPU and GPU markets and capture AI opportunities. However, some analysts remain cautious due to the ongoing challenges. For instance, Goldman Sachs analyst James Schneider raised his price target for AMD stock to $150 from $140, but reiterated a Hold rating. The 4-star analyst noted that AMD is seeing strong traction with its Data Center GPU solutions. In particular, Schneider expects the MI355 offering to drive strong double-digit quarter-over-quarter growth in the Data Center segment in the third quarter and continued sequential growth in Q4 2025. While Schneider remains constructive on AMD's ability to drive significant market share gains in the PC and enterprise server markets in the near term, he retains a neutral stance on the stock as he is 'more guarded' on the company's ability to drive scale in Data Center GPUs over time. Also, he thinks that AMD's earnings power is likely to be hampered by the significant operating expenses ramp needed to support its AI software and systems efforts. Meanwhile, Morgan Stanley analyst Joseph Moore lowered his price target for AMD stock to $168 from $185 and maintained a Hold rating. The 5-star analyst stated that the quarter was solid across segments and revenue continues to be 'quite strong, but it's not clear that will be enough to keep the bulls in charge of the narrative.' He contends that AMD's commentary on the timing of resumption of China shipments was 'more vague than expected.' Overall, Moore slashed his price target for AMD stock to reflect lower conviction in China demand and a lack of AI-related upside. Is AMD Stock a Buy or Sell Now? Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 25 Buys and 12 Holds. The average AMD stock price target of $180.78 indicates 4.6% upside potential from current levels.
Business Insider
6 days ago
- Business
- Business Insider
‘Hurdle Cleared for Now,' Says Analyst After AMD's Mixed Q2 Earnings
TD Cowen analyst Joshua Buchalter reiterated his 'Buy' rating on Advanced Micro Devices (AMD) stock and raised the price target to $195 (from $165), implying 11.9% upside potential from current levels. AMD stock is trending down 6.2% in pre-market trading at the time of writing, as the chipmaker reported mixed second-quarter results yesterday. Buchalter is encouraged by AMD's beat-and-raise results and believes the hurdle is cleared for now, with attention turning to continued execution going forward. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. AMD's revenue rose 32% year-over-year to $7.69 billion, beating consensus estimates, while adjusted earnings of $0.48 per share were in line with expectations. Importantly, AMD raised its Q3 revenue guidance to roughly $8.7 billion (+/-$300 million), well above the consensus expectation of about $8.3 billion. Also, the adjusted gross margin is expected to be approximately 54%, assuming no contribution from MI308 shipments to China. Why Is TD Cowen Bullish About AMD? Buchalter highlighted the strength in AMD's CPU (central processing unit) and Gaming segments, despite zero contribution from MI308. He noted that the largest contributor to AMD's Q3 growth is the Instinct franchise, as the company seeks to ramp up production of the MI355 chips in the second half of 2025. AMD's Q3 performance will also prove its competitiveness ahead of the MI400/Helios launch in 2026. Regarding the resumption of MI308 sales to China, AMD mentioned that the U.S. government is reviewing its export applications and, therefore, has not included any China sales in its Q3 guidance. Buchalter believes AMD's management will prioritize MI355 chips over MI308 in the near term. The analyst expects AMD to maintain growth in server CPUs driven by solid demand for artificial intelligence (AI) applications. Moreover, the cloud and enterprise segments are projected to show consistent growth, while the Client segment is expected to experience modest growth. Meanwhile, Buchalter expects higher operating expenses due to research and development and AI initiatives, which may weigh on AMD's near-term earnings potential. Is AMD a Good Stock to Buy Now? Analysts remain divided on AMD's long-term outlook. On TipRanks, AMD stock has a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and one Sell rating. The average AMD price target of $158.57 implies 9% downside potential from current levels. Year-to-date, AMD stock has gained 44.3%. Please note that most of these ratings were given before AMD's Q2 earnings report and may change once analysts review their recommendations.
Yahoo
6 days ago
- Business
- Yahoo
AMD is Nvidia Blackwell's 'closest' competition, strategist says
Advanced Micro Devices' (AMD) forecast left out revenue from its MI308 chip as China license reviews continue, raising fresh questions about the company's artificial intelligence (AI) momentum. Yahoo Finance Technology Editor Dan Howley and Kimberly Forrest, Bokeh Capital Partners founder and chief investment officer, break down what's holding AMD back in its race against Nvidia (NVDA). To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. AMD CEO Lisa Su said they didn't include any revenue for the MI 308 chip in the third quarter guidance. That's the one that goes into China because the licenses are still under review. And this coming after Nvidia said last month that the US would be granting licenses to ship AI chips to China. Uh my panelists Dan Hally, Kimberly Forest still with me. Um Dan, when you looked through the earnings, you know, and you sort of were figuring out what your takeaways were, does the China stuff sort of overshadow what seemed like a good quarter? Yeah, I mean, that's really kind of what hurt, uh, the the operating income, right? why they saw that operating loss, uh, for the quarter. I think one of the other issues, um, just being that the PC side, the gaming side seem to do rather well, uh, while the AI side, the data center side just kind of met expectations. So I think, you know, when it comes to a company like AMD, a lot of investors want it to be the the next Nvidia, uh, and it just doesn't appear to be doing that at this moment. But they do have their MI 355, uh, MI 350, uh, those are coming. Those are to compete with Nvidia's Blackwell chips, uh, and then obviously we have the MI 400s coming. Uh, those would also compete, uh, with Nvidia's higher end chips, the the VR Rubin, uh, in the future. Uh, and so I think that's really kind of the the biggest issue here is, um, we were, I was reading some of Bernstein's notes this morning, uh, basically saying that, look, the the outlook for data center doesn't really impress the street when, you know, they're anticipating the the kind of explosive growth that they saw out of Nvidia. But you know, Nvidia is the the leader in this space. AMD is trying to to catch up. Uh, they also, while doing that, have to convince customers that they should buy their chips, not just Nvidia's. Right, definitely. So that's sort of the underlying story here. And this brings me back to a comment I read this morning came from Jordan Klein over at Mizuho, who tracks the tech stocks. And he said, who really owns owns AMD or Nvidia just due to upside from sales back into China that had been blocked by Trump. He's but basically he's saying that's not really the story here. Um, so is that how you feel about AMD too? And sort of how much ramp do they have room do they have in that data center business? Sure. Well, I think that they have a lot of room. And yeah, it would be nice for them to be able to sell, um, chips today. But if you're owning a stock and we own them for three to five years. So we have a longer term view. Our view is that AMD is the closest, um, thing to be able to compete against that Blackwell chip. Now, they have a couple of really important hurdles to get over. The first is just basic data center hygiene. Um, data center managers like to have everything uniform and the same because things are always breaking. They have to be able to understand, you know, the parameters of the chip. What does it look like when it's going to break? How can we whip that, um, board out, slide a new one in and get on with our jobs. So that is the first hurdle. The second hurdle is Nvidia's name brand. I, in my note that I wrote earlier today, this really to me feels like era where any kind of goofy idea could get funded as if they had two things. If they specified Oracle as their database and Sun Microsystems was the servers that they were going to run on it, because that tech stack looked like you knew what you were doing. And in today's funding world, I am sure nobody's out there saying, hey, we're going to give a whirl with these AMD chips because they're probably as good and cheaper and, you know, that's that's good. I'm sure every new AI idea is specifying the Nvidia as part of its tech stack. So these are the things that AMD has to overcome. But I think they can with because of their product knowledge and they have financial latitude to, you know, last as long as it takes to kind of chip away at that market. So, Kim, all of that said, um, do you want to own AMD over Nvidia or you still got to own both of them? I think you have to own both. You know, Nvidia's today and AMD has the potential for tomorrow. Related Videos Novo Nordisk warns copycat drugs continue weighing on sales Snap earnings: Stalled growth isn't just from an 'ad glitch' Top 3 takeaways from Uber's Q2 results JPM's Crawford Still Sees Value in Owning Bonds in US Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
HSBC Turns Bullish on AMD
HSBC just gave AMD (NASDAQ:AMD) a big thumbs-up, bumping the stock from Hold to Buy and doubling its price target to two hundred dollars. The reason? The new MI350 series is commanding a healthy premium over rival NVIDIA's (NASDAQ:NVDA) latest chips while matching them punch for punch. Warning! GuruFocus has detected 3 Warning Signs with AMD. Frank Lee at HSBC now figures these MI355 cards will go for about twenty-five thousand dollars eachup from his earlier guess of fifteen thousand. What makes it even sweeter is that they drop right into existing data-center gear, so customers can upgrade without ripping out their racks. AMD CEO Lisa Su has been all about keeping things open, supporting every major AI framework and offering full-stack solutions. That freedom means buyers aren't tied to one vendor's ecosystem, which has helped turn heads in the market. Looking ahead, HSBC thinks there's even more upside once AMD rolls out its MI400 series. The key things to watch will be how fast these new GPUs get picked up and whether partners keep embracing AMD's plug-and-play approach. If they do, that two-hundred-dollar target could look conservative. This article first appeared on GuruFocus.
Yahoo
11-07-2025
- Business
- Yahoo
HSBC Turns Bullish on AMD
HSBC just gave AMD (NASDAQ:AMD) a big thumbs-up, bumping the stock from Hold to Buy and doubling its price target to two hundred dollars. The reason? The new MI350 series is commanding a healthy premium over rival NVIDIA's (NASDAQ:NVDA) latest chips while matching them punch for punch. Warning! GuruFocus has detected 3 Warning Signs with AMD. Frank Lee at HSBC now figures these MI355 cards will go for about twenty-five thousand dollars eachup from his earlier guess of fifteen thousand. What makes it even sweeter is that they drop right into existing data-center gear, so customers can upgrade without ripping out their racks. AMD CEO Lisa Su has been all about keeping things open, supporting every major AI framework and offering full-stack solutions. That freedom means buyers aren't tied to one vendor's ecosystem, which has helped turn heads in the market. Looking ahead, HSBC thinks there's even more upside once AMD rolls out its MI400 series. The key things to watch will be how fast these new GPUs get picked up and whether partners keep embracing AMD's plug-and-play approach. If they do, that two-hundred-dollar target could look conservative. This article first appeared on GuruFocus. Sign in to access your portfolio
