StockBeat: AMD Stutters, but Wall Street Sees Reason for Optimism

This post was originally published on this site
© Reuters. © Reuters. – 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 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

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.