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

Investing.com – Advanced Micro Devices (NASDAQ:) is struggling to shake off losses on Wednesday following a slight miss on third-quarter revenue, but that has not stopped some on Wall Street getting even more bullish on the chipmaker.

Rosenblatt lifted its price target on AMD to $52 from $42 and maintained its hold rating on the stock. AMD) is down 1%.

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.

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.

Rosenblatt said AMD is positioned for ongoing momentum into 2020 amid continuing notebook traction and a ramp-up in desktop and server equipment spend.

Despite the fall in its stock, AMD is up about 77% for the year so far. It has an average price target of $33.54, according to consensus estimates from Investing.com.

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