Morgan Stanley cuts AMD price target to $95 from $102
In the second half of 2021, AMD’s stock price entered the fast lane and ran all the way, and the stock price once exceeded the $160 mark. However, by December 2021, AMD short positions have shown an upward trend, indicating that more investors believe that the stock price will decline in the coming period, and individual investment institutions also lowered the rating of AMD stock from “buy” to “hold”.
In fact, after entering 2022, AMD, like many technology stocks, has shown a downward trend in its share price, falling from a high point to around $68 per share, a cumulative decline of 55%. Although AMD still has good performance under the influence of the severe macroeconomic situation, it still maintains growth and is much better than its competitor Intel, but this trend seems to usher in a big obstacle.
According to The Fly report, Morgan Stanley lowered AMD’s target stock price from $102 to $95 in a new investment report, but still maintained an “overweight” evaluation. At the same time, earnings per share in fiscal 2022 were cut by 5% to $4.02 per share from $4.24 per share, and the valuation in fiscal 2023 was also reduced by about 7% from $4.72 per share to $4.40 per share.
Many PC makers have actively adjusted, but the impact will not be felt until 2023. Intel’s Sapphire Rapids delay may be good news, after all, AMD’s EPYC processor, codenamed Genoa, is on schedule and will consolidate its performance advantage in the server market.
