AMD (AMD) PT Lowered to $150 at Raymond James
Raymond James analyst Srini Pajjuri lowered the price target on AMD (NASDAQ: AMD) to $150.00 (from $180.00) while maintaining a Outperform rating.
The analyst comments "AMD’s 4Q24 results and 1Q25 revenue outlook were slightly better than consensus, driven by PC segment. Data Center was slightly short of our model and management is guiding for a q/q decline in AI (MI3xx) revenue, which likely explains the aftermarket reaction. That said, we believe management’s outlook implies ~$7.5b revenue for MI3xx in 2025, which is not far off from recent investor expectations. AMD made good progress at META and MSFT, and commentary alludes to additional lighthouse/hyperscale customer announcements in coming quarters. Roadmap is ahead of plan with MI350 series on track for mid-year ramp, which should set the stage for a strong 2H25. In other products, Server CPU gains are progressing while Embedded recovery is more muted. We are lowering estimates (on weaker MI3xx and due to our conservative view on PC demand) and lowering PT from $180 to $150. NVDA’s dominance (and ASIC competition) notwithstanding, we believe 10-20% AI GPU unit share is not unreasonable for AMD longer term, which should drive double-digit growth for the next 2-3 years. Reiterate Outperform."