5-star analyst recalibrates view on AMD stock

Core Viewpoint - Advanced Micro Devices (AMD) is gaining traction in the AI sector, evidenced by its partnership with OpenAI and a strong GPU roadmap, but high market expectations may not align with its fundamentals [1][4][8] Group 1: AMD's Recent Performance - AMD's stock has surged over 30% in the last quarter and is projected to nearly double in 2025, indicating strong investor confidence [2] - The company is expected to benefit from increased demand, particularly with Oracle planning to utilize 50,000 AMD GPUs [2] Group 2: Analyst Insights - Bernstein analyst Stacy Rasgon has updated AMD's outlook, noting that while optimism is justified, expectations are excessively high [4][6] - Rasgon maintains a market perform rating on AMD with a price target of $200, which is 16% lower than its current price [6] Group 3: Financial Projections - For Q3, Rasgon forecasts AMD's sales at $8.94 billion and earnings per share (EPS) at $1.22, slightly below consensus estimates [7] - For 2026, he projects revenue of $39.1 billion and EPS of $5.27, which is significantly lower than Wall Street's expectations [7][8]