Evercore trims AMD price target, says weakness a buying opportunity

Evercore ISI lowered the firm’s price target on AMD to $193 from $200 and keeps an Outperform rating on the shares. AMD has sold off by 30% over the past eight weeks and the firm thinks concerns around its Mi300 AI chip are overdone, calling the weakness following its Q1 report “a particular buying opportunity.” The firm’s thesis is that the AI chip market will grow to an $80B market over the next five years and that AMD will capture up to 20% of that market, saying “we did not hear anything on the call that moves us away from that thesis,” and noting that AMD has increased its outlook for the Mi300 each quarter for the past three and “we expect that pattern to continue through 2024.”