AMD price target lowered to $185 from $195 at BofA

BofA lowered the firm’s price target on AMD to $185 from $195 and keeps a Buy rating on the shares. Q1 and Q2 sales were inline, but bulls did not get the raise in AI MI300 accelerator sales forecast they were hoping for, as AMD management “only” increased it gradually to $4B from $3.5B last quarter, the analyst noted. For calendar 2024, BofA lowered its sales forecast by 1% to $25.6B and pro-forma EPS view by 4% to $3.47. For calendar year 2025, the firm lowered its pro-forma EPS forecast by 7% to $4.72 on a more muted path of gross margin expansion and legacy sales recovery.