AMD price target lowered to $230 from $270 at KeyBanc

KeyBanc analyst John Vinh lowered the firm’s price target on AMD (AMD) to $230 from $270 and keeps an Overweight rating on the shares. The firm notes AMD posted solid Q1 results, which were slightly above expectations, driven by strong data center as MI300X revenues, along with Client, offset weaker results in Embedded and Gaming. Additionally, AMD increased its 2024 data center GPU outlook to $4B vs. $3.5B prior. KeyBanc believes the $4B outlook is likely to be viewed as disappointing and reflects near-term impacts from Microsoft (MSFT) order cuts and HBM3 performance issues. However, the firm still believes the GPU outlook is likely to be conservative and that there is still greater demand than what AMD can supply this year.