Core Insights - Wall Street remains optimistic about Advanced Micro Devices (AMD) stock following the company's third-quarter earnings beat, although the stock experienced a decline due to concerns over gross-margin guidance [1][2]. Financial Performance - AMD's adjusted earnings for Q3 were $1.20 per share, surpassing the consensus estimate of $1.16, while revenue increased by 36% year-over-year to $9.25 billion, exceeding forecasts of $8.74 billion [1]. - Net income rose to $1.24 billion from $771 million in the same quarter last year [1]. Future Guidance - For Q4, AMD anticipates revenue of approximately $9.6 billion, indicating a 25% growth, and projects a gross margin of 54.5%, aligning with market estimates [2]. - The stock's pullback is attributed to the Q4 gross-margin guidance meeting rather than exceeding expectations [2]. Analyst Sentiment - AMD holds a 'Moderate Buy' rating from 39 analysts, with 29 recommending a buy and 10 advising hold, projecting an average price target of $255.77, reflecting a 2.29% upside from the latest trading price of $250.05 [3]. - Price targets among analysts range from $160 to $310 [3]. Price Target Adjustments - Baird's Tristan Gerra raised AMD's price target to $300 from $240, maintaining an 'Outperform' rating, citing optimism over AI-driven growth and the upcoming Mi450 product ramp as key catalysts [5]. - Stifel analyst Ruben Roy increased AMD's price target to $280 from $240, maintaining a 'Buy' rating, highlighting strong Q3 results and expected growth in AI GPU revenue [6]. - UBS analyst Timothy Arcuri lifted AMD's price target to $300 from $265, reiterating a 'Buy' rating based on anticipated strength in AI GPU demand and server upgrades [7].