From Nasdaq: 2024-04-30 02:44:00

Analysts at Susquehanna are cautious ahead of AMD’s first-quarter earnings report, maintaining a positive rating but lowering the price target to $185. Expectations are for weaker guidance, primarily due to softness in the client segment last year, although data center GPUs are anticipated to perform well.

Investors are banking on strong results from AMD’s data center GPUs amid a challenging year for PC shipments. While the client segment struggled in 2023, the potential for a recovery later this year and high demand for AMD’s GPUs in AI applications could drive the stock price back up.

AMD’s stock valuation suggests a need for a robust outlook for 2024 to justify its current price. With a forward P/E ratio higher than Nvidia’s, the company’s success in the data center GPU market and expectation for a client segment recovery will likely impact stock performance.

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Read more at Nasdaq: 1 Wall Street Firm Thinks Advanced Micro Devices Stock Is Going to $185 Instead of $200 — But Is It Still a Buy?