AMD Stocks Decline While Future Expectations Remain

Advanced Micro Devices (AMD) shares declined on Tuesday following negative comments from Morgan Stanley. Analyst Joseph Moore rated the stock as 'Hold,' setting a price target of $246, indicating that little increase is expected from the current level. Moore stated that AMD is in a good position, but the growth of graphics processing units (GPU) may slow down in the short term. However, it was noted that the company plans to release the MI450 AI accelerator next year.

Wall Street expects AMD to generate $1.17 in earnings per share and $8.76 billion in sales. The company has outperformed expectations six times in earnings and seven times in revenue over the last eight quarters. This creates a solid foundation for the company's future performance. Despite the decline before earnings, the stocks have performed with an increase of more than 110% by 2025, thanks to demand in the artificial intelligence sector and the expansion of data centers.

Over the past year, shares increased by 83%, reflecting investors' optimism regarding the growing importance of high-performance computing.