AMD Stocks Decline While Future Expectations

Advanced Micro Devices (AMD) shares fell on Tuesday following negative comments from Morgan Stanley. Analyst Joseph Moore rated the stock as 'Hold' and set a price target of $246, indicating that little further upside is expected from current levels. Moore noted that AMD is well-positioned, but GPU growth may slow in the short term. However, it was mentioned that the company plans to launch the MI450 AI accelerator next year.

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

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