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Northland Capital Markets analyst Gus Richard upgraded shares of AMD (NASDAQ:AMD) to Outperform from Market Perform with a price target cut to $95.00 per share.
The analyst believes macro headwinds are now priced in, both in his estimates and the share price, which is down 53% from the peak in November.
Not just for AMD, Richard argues that the estimates for semiconductor companies are too high in general.
“We scrubbed our AMD numbers and lower our CY23 estimates to comprehend a global economic slowdown that will likely impact PC CPUs, GPUs, game consoles, and XLNX. AMD in servers CPUs is at the top of the stack next year we believe AMD will see little impact on this business in CY23. We estimate that AMD’s PC CPU revenue will decline 6% next year, and GPU revenue will decline 7%,” Richard told clients in a note.
Given today’s cut to estimates, Richard argues these are now a “low bar for the company.”
AMD shares are still down 1.5% today.
