Advanced Micro Devices Inc. offered relief to some on Wall Street as the company further discussed its artificial-intelligence roadmap, but other analysts highlighted continued unknowns as shares of the chip giant slid 5% in Wednesday trading. While the chip company reported earnings that were slightly better than-expected on Tuesday, Wall Street seemed more focused on AMD’s
future opportunities around AI, especially as rival Nvidia Corp.
is increasingly synonymous with the hot market for AI accelerators.
“In addition to strong traction in Genoa, the company further reiterated MI300 is sampling now and on track for launch and ramp in [the fourth quarter],” Cowen & Co. analyst Matthew Ramsay wrote after the report, referring to the company’s new AI chip. “In our view, these were key concerns for investors coming into the call and while the [data points] were positive … for some the [fourth quarter] implied [data center] ramp of 45% [growth on a sequential basis] will still very much need to be proven.” He rates the stock outperform with a $135 target price. Opinion: AMD’s AI era to begin near year’s end, but it’s looking more like a 2024 story The results and commentary prompted at least one analyst, Christopher Danely of Citi Research, to take a more bullish view of AMD shares. “We had thought AMD’s AI products (MI300) would be margin dilutive, but the company stated it should be margin accretive,” he wrote, as he raised his rating on the stock to buy from neutral and lifted his target price to $136 from $120. “We …