Truist Maintains Hold on AMD, $111 Price Target

Truist Securities analyst William Stein reiterated a Hold rating and $111 price target on AMD (NASDAQ: AMD).

“Debate rages around AMD’s Datacenter GPU strength – not whether the company can deliver Datacenter GPU product and ramp revenue, but instead: to what degree are customers (1) buying to stimulate competition and price-check NVDA (this is our view), or (2) buying because they or their customers actually prefer AMD’s technology.

A narrower controversy that emerged mid-qtr was the question as to whether AMD’s next-gen DC GPUs will be used at AWS.

Based on our discussions with management, we believe the appearance and disappearance of that customer’s logo from AMD’s list of customers reflects a desire for some customers to announce supplier relationships at their own events.

Industry contacts reflect a significant inventory build in the channel which is difficult for us to explain. Near-term catalysts: We expect the next significant catalyst for AMD will be Q2 earnings.

We do not have a strong view as to whether this will be a positive or negative catalyst for now.”

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