Stifel Lowers AMD Price Target to $162

Stifel analyst Ruben Roy lowered the price target on AMD (NASDAQ: AMD) to $162 (from $200) while maintaining a Buy rating.

“4Q results were roughly in-line with expectations with aggregate revenue of $7.7bn, increasing 24% y/y, driven by continued growth in the DC and Client segments, offset by lower Gaming and Embedded revenue.

While Client revenue continued to accelerate (+58% y/y on continued market share gains), DC expectations were higher.

Looking ahead, AMD’s 1Q guidance is also roughly in-line with consensus estimates, but management stopped short of providing perspective on AI (Instinct) compute growth for 2025.

Instead, expectations for 1H DC shipments (server/GPU) are expected in-line with 2H 2024, which we believe means ~$3bn in 1H for Instinct.

Management noted the continuation of strong customer engagements and, importantly, an earlier launch expectation for MI350 – mid-year versus previously stated 2H.

We continue to see AMD as well positioned for AI compute. It is likely, in our view, that some customers are waiting for 325/350 systems, which should drive a much stronger 2H.”

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