Advanced advanced devices (NASDAQ: AMD) witnessed a decrease in its shares over 10 % on Wednesday, February 5, after losing Wall Street’s expectations for the main data center sector.
While the chip maker exceeded revenue and profit expectations, its data center revenues amounted to 3.86 billion dollars – with less than $ 4.14 billion they had signed.
The disappointing numbers of AMD shares sent to the lowest new level for 52 weeks at $ 106.5 before the bounce. As of the time of the press, the shares are trading at $ 110, which represents 7 % recovery a day.
For the full year, AMD Data Center revenues Rise 94 % to 12.6 billion dollars, with instinct processing units that focus on artificial intelligence contribute $ 5 billion. However, investors remain cautious because AMD is struggling to get a meaningful floor against NVIDIA (NASDAQ: NVDA).
Analyst reactions: a divided future look
In the wake of the profit report, analysts reviewed their prices, as most companies cut off, but maintained neutral situations to ascending the long -term AMD prospects.
Habboudi expectations
City Lower Its targeted price from $ 175 to $ 110 and has lower Amd to “neutral”, noting that there are no guidelines for artificial intelligence revenues and a potential margin. The company expects artificial intelligence revenues to remain flat or a decline in the first half of 2025.
Goldman Sachs followed her example, lowering the target price from $ 129 to $ 125 while maintaining a “neutral” position.
The analysts in the company highlighted the performance of the amazing AMD data center, noting that although positive capital expenses of Easter such as Microsoft (NASDAQ: MSFT) and Meta (Nasdaq: Meta), the vision is still unconfirmed.
Meanwhile, Bofa Securities referred to the AMD struggle to clarify a position against NVIDIA and reduced its price to $ 135 due to the poor performance of the data center.
Neutrality to the upcoming expectations
Despite the short -term challenges, some analysts are still optimistic about the capabilities of the AMD intelligence growth. PIPER SANDLER maintained a “weight gain” rating with a goal of $ 140, expecting to pick up the growth of artificial intelligence in the second half of 2025 despite relapses in the near -term.
KEYBANC also modified her outlook, which reduced its target price to $ 140, but he remained positive in the AMD location in the artificial intelligence market.
Meanwhile, in the end of the upscale, Northland maintained its “superior performance” classification with the price of the price of $ 175, as it offered 9.2 billion dollars in the revenue of artificial intelligence for 2025, even with the survival of the first half.
UBS chanted this feeling, reducing his goal from $ 190 to $ 175, but maintains a “purchase” classification, pointing to the confidence in the AI AMD road map.
The company has highlighted the early MI350 as a major factor in promoting AMD competitive mode against B200 NVIDIA.
Likewise, Barclays maintained the “weight gain” classification with $ 140, pointing to the transitions of the AI’s fast AI. With the start of the MI350 in the middle of the year and the MI400 shortly after, Barclays believes that the last shares are a potential purchase opportunity.
What comes following: Can AMD shares decrease to less than $ 100?
With the demand for artificial intelligence forming a semiconductor scene, the performance of the AMD data center is now a main pivotal point for analysts and investors.
The total market profits and morale have sparked fears that AMD shares could back down from the $ 100 threshold. Analysts note that although AMD has made progress, the uncertainty about its ability to obtain a greater share of the artificial intelligence chips market.
In addition to the pressure, the semiconductor industry faces potential opposite winds of geopolitical factors, including the last wave of American definitions on China, which may affect AMD and its competitors.
In addition, the rise of artificial intelligence models such as Deepseek in China has introduced new uncertainty as effective alternatives threaten the domination of the traditional silicon valley players.
Despite the continued uncertainty in the short term, analysts see AI’s expansion of artificial intelligence as a key for its future evaluation, with a frequency of recovery in late 2025.
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