AMD Stocks Declining Expectations for the Future

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 he does not expect significant upside from the current level. 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 six times in earnings and seven times in revenue over the last eight quarters. This establishes a solid groundwork for the company's future performance. Despite declines before earnings, the stock has performed with over a %110 increase by 2025, driven by demand in the artificial intelligence sector and the expansion of data centers.

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