Bank of America analysts raised their price target for AMD (NASDAQ:AMD) to $195 from $165 in a note Monday but cautioned there is the potential it could miss Q1 guidance expectations when it reports earnings after the close on Tuesday, January 30.
Analysts, who reiterated a Buy rating on the stock, said there is a tougher near-term set-up for the company, although the long-term artificial intelligence (AI) tailwinds remain solid.
They flagged the potential for some modest correction around earnings due to the potential for a Q1 guidance miss vs. consensus on PC/FPGA weakness and the stock run-up, with AMD shares surging 84% in the past three months vs. SOX up 35%.
"We expect inline Q4 results but lower Q1 sales to $5.5bn, -10% QoQ, below consensus $5.8bn, -5.6% QoQ," analysts said.
"Some Q1 miss is already expected following peer INTC's weak report; we think focus of call will be AMD's MI300 AI accelerator expectations where we expect management to qualitatively or quantitively raise CY24 expectations above prior $2bn and more inline with consensus in the $3-$3.5bn range, with Q4'24E exit rate of over $1.4-$2bn quarterly," they added.
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