AMD: Balancing Growth Prospects with Market Challenges – Hold Rating Justified

DBS analyst Amanda Tan has maintained their neutral stance on AMD stock, giving a Hold rating yesterday.

Amanda Tan’s rating is based on a combination of factors that highlight both the strengths and challenges faced by Advanced Micro Devices (AMD). The company has demonstrated strong growth in its data center segment, driven by increasing demand for AI-related technologies and its competitive product roadmap. AMD’s strategic initiatives, including the introduction of new accelerators and its ability to capture market share from competitors like Intel, position it well for future growth.
However, Amanda Tan notes that while AMD’s prospects are promising, several risks temper the outlook. The impact of export controls is expected to reduce GPU revenue significantly in the coming years, and the company’s heavy reliance on the PC market makes it vulnerable to economic fluctuations. Additionally, intense competition from major players like Intel and NVIDIA could affect AMD’s market position. These factors suggest that while AMD is well-positioned for growth, the current stock price may already reflect much of this potential, justifying a Hold rating.

According to TipRanks, Tan is an analyst with an average return of -2.0% and a 43.48% success rate. Tan covers the Technology sector, focusing on stocks such as Intel, Advanced Micro Devices, and STMicroelectronics.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $121.00 price target.