Stacy Rasgon, an analyst from Bernstein, maintained the Hold rating on Advanced Micro Devices. The associated price target remains the same with $200.00.
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Stacy Rasgon has given his Hold rating due to a combination of factors related to Advanced Micro Devices’ current market position and future prospects. While AMD has shown improvement in its competitive standing against Intel and has a promising AI narrative, the expectations for the company are significantly high. This is particularly relevant given the recent nervousness in the AI sector, which adds a layer of uncertainty to the company’s future performance.
Additionally, although AMD’s core markets have stabilized post-COVID, and there is potential for growth in AI and other sectors, the company’s valuation remains expensive. The market already anticipates substantial growth and margin expansion, which means AMD will need to deliver strong results to meet these expectations. As such, while there are positive developments, the high expectations and current share price justify a Hold rating.
According to TipRanks, Rasgon is a 5-star analyst with an average return of 29.1% and a 68.75% success rate. Rasgon covers the Technology sector, focusing on stocks such as Applied Materials, Advanced Micro Devices, and Intel.