AMD Shares Fall 7% YTD, Plunge 17% Post-Q4 Sparks Target Cuts
AMD shares rose 83% over the past year but are down 7% year-to-date after a 17% post-Q4 earnings drop. Goldman Sachs maintains a neutral rating with a $210 target, and UBS cut its target to $310 while noting a $1 billion gaming expense reduction.
1. Share Performance
Advanced Micro Devices shares have surged 83% over the past year but retreated 7% year-to-date following a sharp 17% decline after its fourth-quarter earnings report, reflecting investor disappointment with near-term growth projections.
2. Analyst Ratings and Targets
Goldman Sachs retained a neutral rating on AMD shares with a $210 price target, while UBS upheld its buy rating but lowered its target from $330 to $310, citing uncertainties in the company’s outlook.
3. Gaming Expense Impact
UBS highlighted AMD’s decision to implement a $1 billion reduction in gaming-related operating expenses, raising questions about potential margin pressure as the company reallocates resources toward high-growth AI and data center segments.