Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Wednesday, Goldman Sachs adjusted its price target on shares of AMD (NASDAQ:AMD), bringing it down to $125.00 from the previous $129.00 while reaffirming a Neutral rating on the stock. The adjustment follows AMD’s release of its fourth-quarter 2024 results and first-quarter 2025 guidance, which showed the company’s continued progress in executing its product roadmap and gaining market share in Client and Server CPUs. According to InvestingPro data, analyst targets for AMD currently range from $90 to $250, reflecting diverse market opinions about the semiconductor giant’s prospects.
AMD’s stock experienced a 9% drop in after-hour trading. This decline was attributed to the company’s performance in the Data Center sector and its future outlook, which did not meet investor expectations. Despite positive forward-looking capital expenditure statements from major tech firms like Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Google (NASDAQ:GOOGL) over the past week, AMD’s management projected that first-half 2025 Data Center revenue would be on par with the second half of 2024. The company maintains strong financial health with a current ratio of 2.5 and moderate debt levels, as revealed by InvestingPro analysis, which offers 15+ additional insights about AMD’s financial position.
The firm’s analysis highlighted lingering questions concerning the sustainability of AMD’s Client business. This sector has seen six consecutive quarters of robust double-digit percentage growth, leading to some caution among investors. With AMD’s stock trading at a P/E ratio of 105x and projected revenue growth of 13% for FY2024, Goldman Sachs is taking a watchful approach. The firm is looking for signs of re-accelerated growth before adopting a more positive stance on AMD’s stock. For a comprehensive analysis of AMD’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, AMD has seen a series of adjustments in its stock price target from various financial firms. UBS reduced the price target from $190 to $175, citing mixed financial disclosures and a less optimistic outlook on data center GPU revenue. However, the firm maintained its Buy rating, indicating continued confidence in AMD’s AI technology roadmap and the upcoming MI350 GPU family.
Raymond (NSE:RYMD) James also reduced AMD’s price target, from $180 to $150, while maintaining an Outperform rating. The firm noted AMD’s strong performance in the PC segment and anticipated revenue of approximately $7.5 billion for the MI3xx in 2025. AMD’s product roadmap, including the mid-2025 ramp-up of the MI350 series, was also highlighted.
KeyBanc Capital Markets followed suit, lowering its price target on AMD from $150 to $140, but keeping its Overweight rating. The firm expects AMD to continue capturing market share, particularly in the AI sector, despite mixed results in the Data Center GPU segment.
Barclays (LON:BARC) reiterated its Overweight rating on AMD shares with a price target of $140.00, emphasizing AMD’s client business performance and the company’s confidence in the growth of the DC business. Finally, BofA Securities cut AMD’s price target to $135 from $155, maintaining a Neutral stance, citing competition from NVDA and the rise of custom ASIC chips in AI technology.
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