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RBC Capital maintained its Sector Perform rating, which is a neutral stance suggesting the stock will likely perform in line with the broader market. While the firm's $675 target is significantly higher than where the stock trades today, it reflects a wait-and-see approach following the company's recent quarterly results. Other analysts have a similar outlook, with the average target across all firms sitting at about $654. This suggests that while professional researchers see plenty of room for the stock to rise, they are looking for more evidence of how quickly the company can scale its new AI systems before becoming more aggressive.
Source: RBC Capital
AMD is teaming up with IBM and the Oak Ridge National Laboratory to launch a system focused on quantum error correction. Quantum computers are incredibly powerful but prone to mistakes caused by heat or magnetic interference, and fixing these errors is the main hurdle to making the technology useful for real-world tasks.
While this is a long-term research project rather than a near-term profit driver, it keeps AMD at the center of the next generation of computing. It shows that the company's high-performance chips are being used for more than just today's AI data centers, positioning it as a key partner for the most complex scientific work being done today.
Source: Reuters
After Advanced Micro Devices reported its November results, we updated our fair value. We raised our projections for the data center business after sales of AI and server chips grew to $8.5 billion in the quarter. We have added the company's investments in AI labs and its strategy for robotics to what we track. We also added a new focus on how building up inventory for product launches affects the cash the company keeps.
AMD delivered a record quarter as sales of its Instinct AI chips and EPYC server processors drove a 97 percent jump in data center revenue. The company earned $2.09 per share on $13.38 billion in total revenue, both of which came in ahead of what analysts expected. These results show that AMD is successfully capturing the massive demand for AI infrastructure as cloud providers look for alternatives to Nvidia.
Management expects this growth to pick up speed in the final months of the year as it ramps up production of its next-generation chips. While the company is still chasing the market leader, these numbers confirm it has established itself as the primary second source for the world's largest tech giants. We think the business is getting stronger as it shifts from being a PC-focused chipmaker to an AI powerhouse.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Intel recently reported trouble meeting demand for its AI server chips and noted a weak market for personal computers. Because both companies sell into the same markets, these struggles often signal broader industry trends.
The stock fell as some questioned if these issues might also affect this business. The upcoming results will clarify whether the company is gaining share while its rival struggles or if the entire market for these chips is slowing down.
Source: Market Watch
Management consistently sets a bar they can clear, but the recent doubling of data center sales shows the business is now outrunning even their own upbeat forecasts.
| Expectation | |
|---|---|
| EPS | $2.91 |
| Revenue | $16.36B |
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