AMD reported earnings per share of 48 cents, slightly below the expected 49 cents. Revenue, however, was strong at $7.69 billion, surpassing estimates of $7.42 billion. The CEO highlighted a decline in AI business revenue due to U.S. export restrictions affecting sales to China. Despite the earnings miss, several analysts including Deutsche Bank and JPMorgan raised their price targets for AMD, citing improvements in product competitiveness and prospects for revenue growth. In contrast, shares of Super Micro Computer dropped 17% in premarket trading due to an earnings miss.
"AMD posted EPS of 48 cents, which missed estimates of 49 cents. However, the company's revenue of $7.69 billion exceeded estimates of $7.42 billion."
"AI business revenue declined year over year as U.S. export restrictions effectively eliminated MI308 sales to China, and we began transitioning to our next generation," CEO Lisa Su said.
"JPMorgan raised its price target to $180 from $120, noting that 'AMD is improving its competitiveness across CPU and GPU products with Ryzen, EPYC, and Radeon Vega platforms.'"
"Wells Fargo reiterated its overweight rating with a $185 price target, while Barclays raised its price target to $200 from $130."
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