Superior Micro Gadgets first-quarter outcomes had sufficient for each bull and bears on the Road to gnaw at going ahead. The semiconductor inventory added 2% in after the corporate reported earnings and income that topped analyst expectations. The quarter was pushed partially by knowledge middle income of $3.7 billion, which exceeded estimates as effectively. Nevertheless, CEO Lisa Su stated AMD sees round $700 million in misplaced income this quarter on account of export controls. For the complete 12 months, it expects a $1.5 billion hit. Many analyst reiterated their hold-equivalent scores on the inventory following the discharge. These embrace Bernstein, Citi and Deutsche Financial institution. Morgan Stanley additionally saved its equal weight score and trimmed its worth goal on the inventory. Others, nonetheless, have been extra constructive. Financial institution of America upgraded shares to purchase, whereas UBS upped its worth goal following earnings. Check out what a number of the greatest retailers on the Road needed to say. Financial institution of America upgrades shares to purchase from impartial, lifts worth goal to $120 from $105 Financial institution of America’s new goal implies upside of 21.7%. “We price AMD Purchase. It serves a multi-hundred billion addressable market alternative in PC, server, high-end gaming, deep-learning and associated markets the place AMD has lower than 30% worth share presently,” wrote analyst Vivek Arya. “Whereas AMD’s knowledge middle accelerator merchandise are nonetheless 1yr behind chief’s roadmap, we see continued demand for a steady second supply different in GPUs and probably share acquire opps as AMD narrows the product/methods hole. On the CPU entrance, we see continued share beneficial properties in opposition to the incumbent.” Bernstein maintains market carry out score, $95 worth goal Analyst Stacy Rasgon’s goal implies about 4% draw back from Tuesday’s shut. “Total the take seems similar to final quarter, i.e. an enormous consumer beat fueling sustainability worries, lukewarm DC/GPU vs expectations, rising spending that limits leverage, and a necessity for a 2H hockey stick, and now accompanied by bigger issues on the macro entrance particularly into the 2H.” Citi reiterates impartial score and worth goal of $100 Citi’s forecast is simply 1% increased than AMD’s present worth. “We alter estimates and preserve our Impartial score on AMD given AMD’s slowing AI development and poor margin leverage.” Deutsche Financial institution stands by maintain score and $105 per share worth goal Deutsche’s forecast corresponds to upside of round 6%. “Total, we applaud AMD’s capability to ship relative stability to its mixture income within the face of so many macro cross currents. Nevertheless, with steep ramps in DC/Embedded constructed into our ests and sustainability questions more likely to persist in Consumer/Gaming, we go away our CY26 estimates largely unchanged.” Barclays retains chubby score, $110 worth goal Analyst Tom O’Malley’s goal requires 12% upside going ahead. “The corporate is managing to solely decline one quarter y/y in DC GPU regardless of $1.5B China export headwind. The Consumer enterprise once more impresses, pushed by considerably increased ASPs and the preliminary foray into the high-end industrial market. We might argue the mixture of those is a significantly better end result than anticipated, even with the complete 12 months DC GPU quantity shifting nearer to $6B.” Wells Fargo maintains chubby score and $120 per share forecast The financial institution’s $120 per share goal implies a possible upside of twenty-two%. “We’re optimistic on AMD’s capability to proceed gaining share within the server and PC CPU markets, growing traction in datacenter GPUs, optimistic / accelerating incremental working leverage, and finally, earnings energy in extra of $6/share by 2025.” JPMorgan reiterates impartial score, trims worth goal to $120 from $130 “AMD is bettering its competitiveness throughout CPU and GPU merchandise with Ryzen, EPYC, and Radeon Vega platforms and is on monitor to enhance its market share and drive significant income development within the close to time period. Long run, we imagine share beneficial properties are much less sure. AMD should make investments closely in working expense (particularly R & D) with a purpose to hold tempo with the market leaders, probably limiting working leverage. AMD is executing effectively towards its goal monetary mannequin, however we stay Impartial as shares look like almost totally valued,” wrote analyst Harlan Sur. Morgan Stanley retains equal-weight score, lowers worth goal from $137 per share to $121 The financial institution’s up to date forecast is 23% increased than the inventory’s Tuesday shut. “AMD posted a robust quarter, with energy in PC consumer driving the upside; regardless of a $700 mm 2q headwind from export controls, the corporate remarkably nonetheless guided above. AI progress, and PC consumer sturdiness, key from right here,” wrote Joseph Moore. UBS stands by purchase score and lifts worth goal to $155 from $150 Analyst Timothy Arcuri’s up to date forecast corresponds to a 57% rally forward. “The story in our eyes nonetheless hinges on the brand new household of AI options coming subsequent 12 months, however buyer traction amongst U.S. hyperscalers is gaining momentum, and AMD could possibly draft off of NVDA’s ‘rising pains’ in ramping these new system options this 12 months, and we stay constructive on the general knowledge middle capex and AI backdrop into 2026. With the noise from this ban now out of the best way and a few forthcoming readability on tariffs, the bias for the inventory appears to be to the upside — particularly into its AI Occasion in mid-June the place it’ll probably present extra element on these new options (MI400) ramping subsequent 12 months.”
