AMD (NASDAQ:) was reduce to Equal-Weight from Obese at Morgan Stanley on Monday. The agency maintains a $176 worth goal on the inventory.
Whereas the financial institution nonetheless favors the narrative, it mentioned investor expectations for the AI enterprise nonetheless appear too excessive to them.
Analysts clarify that the AI expectations do not depart room for a lot upside, even with a restoration within the core enterprise. “We see limited upward
revision potential for AI from here,” they wrote.
As well as, Morgan Stanley says AMD seems costly relative to different large-cap AI performs, NVIDIA (NASDAQ:) and Broadcom (NASDAQ:), the place analysts have extra confidence in upward revisions to AI forecasts. The financial institution prefers NVDA and AVGO amongst large-cap semis.
Nonetheless, Morgan Stanley analysts proceed to see AMD’s product lineup as a share winner within the shopper and server CPU markets this 12 months.