Morgan Stanley Raises AMD Price Target to $246 on Strong AI Datacenter Outlook

Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is gaining attention as a leading AI stock, with significant upward revisions in revenue and earnings projections due to rising demand for AI-related products [1][3]. Group 1: Price Target and Earnings Estimates - Morgan Stanley analyst Joseph Moore raised AMD's price target to $246.00 from $168.00 while maintaining an Equal Weight rating [1]. - The firm's revised projections for 2027 now include revenue of $51.2 billion, up from $44.2 billion, and non-GAAP earnings per share of $8.82, up from $6.74 [2]. Group 2: Market Position and Demand - The outlook reflects increasing demand for AI-related products and confidence in AMD's positioning within the data center market [3]. - AMD's new price target aligns its valuation with large-cap AI peers such as Broadcom and Nvidia, indicating potential for a higher valuation if major AI customers are secured [3]. Group 3: Company Overview - AMD develops and sells semiconductors, processors, and GPUs for various applications, including data centers, gaming, AI, and embedded systems [4].