Is Advanced Micro Devices Stock Going to $230? 1 Wall Street Analyst Thinks So
Shares of Advanced Micro Devices (NASDAQ: AMD) have sold off following the company's first-quarter earnings announcement on April 30. The company's revenue was consistent with expectations, but investors were looking for a stronger outlook for the data center business.
KeyBanc analyst John Vinh lowered his price target on the shares from $270 to $230. The firm maintained an overweight (buy) rating on the stock, and it sees AMD as still on track to capitalize on the growing demand for graphics processing units (GPUs) due to artificial intelligence (AI).
In January, management raised its guidance for the data center segment to bring in $3.5 billion in full-year revenue, up from the previous estimate of $2 billion. The latest outlook now calls for full-year data center revenue to exceed $4 billion.
Source Fool.com