Stifel analysts lifted the firm's price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $98 from $91 per share, reiterating a Buy rating in a note Tuesday.
The analysts said that while near-term headwinds persist, the firm is reiterating its Buy rating on the stock based on longer-term prospects and its valuation.
Looking ahead to AMD's Q1 results on Tuesday, May 2nd, after the market close, the analysts revealed that while they expect inline Q1 results, they are lowering their Q2 estimates.
"We are also lowering our 2H assumptions given recent data points that suggest a slower pace of recovery expected in the PC market and given the potential for slower near-term data center demand," the analysts wrote.
"While visibility into the medium-term demand environment has become increasingly unclear, we believe AMD's market share gains, particularly in data center applications, should drive above-market growth exiting 2023 and in 2024. We are pushing some of our 2H growth assumptions into 2024 and, consequently, raising our 2024 estimates," they added.
"We remain bullish on AMD shares as we continue to expect medium-term market share gains and acquisition synergies that are, in our view, underappreciated."