AMD(US:AMD) Ge Long Hui·2025-11-05 14:33Core Viewpoint - Morgan Stanley's research report indicates that AMD's third-quarter performance largely met expectations, with particularly strong results in the gaming segment [1] Group 1: Business Performance - The gaming business showed exceptional strength during the third quarter [1] - The server market also performed robustly, with the company continuing to drive growth in the PC sector and expanding its market share in the server market [1] - The embedded business is experiencing a cyclical recovery, with management stating that this segment will see growth next year [1] Group 2: AI and Competitive Landscape - In the AI sector, the company's progress met expectations, recovering year-on-year growth after a setback in the first half of the year [1] - However, AMD's performance in AI remains relatively subdued compared to competitors, with NVIDIA and Broadcom's ASIC business growth rates significantly outpacing AMD [1] Group 3: Financial Estimates - The estimated revenue for the December quarter is $9.644 billion, with a non-GAAP gross margin of 54.7% and an operating margin of 25.7% [1] - Earnings per share are projected to be $1.32 [1] - The target price has been raised from $246 to $260, maintaining a "market perform" rating [1]