Investing.com – Advanced Micro Devices (NASDAQ:) shares were struggling to shake off losses on Wednesday following a slight miss on third-quarter revenue. The miss, however, has not stopped some on Wall Street getting even more bullish on the chipmaker.
Rosenblatt Securities lifted its price target on AMD to $52 from $42 and maintained its hold rating on the stock. AMD) was down 1.33% at 1:45 p.m. (17:45 GMT).
AMD reported of 18 cents a share, in line with consensus estimates from Investing.com. But its revenue of $1.8 billion just missed estimates of $1.81 billion. Earnings were up 38.4% from a year earlier. Revenue was up 9.1%.
The slight miss on the top line was driven by a fall in demand for gaming consoles, pressuring sales of the company’s gaming CPUs.
But the headwinds from gaming may fade ahead of the new game console cycle, with Microsoft (NASDAQ:) and Sony (NYSE:) expected to launch new consoles late next year.
Looking ahead, AMD will likely benefit from continuing notebook traction and a ramp-up in demand for desktop and server equipment in 2020, Rosenblatt suggested.
AMD is up about 77% for the year so far despite Wednesday’s decline. It has an average price target of $33.54, according to consensus estimates from Investing.com.
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