Advanced Micro Gadgets provided a third-quarter profits and income beat on Tuesday. You would not understand it by taking a look at the stock response. For the 3rd quarter, the business made a changed $1.20 per share on income of $9.25. Sales increased 36% from this time in 2015. Experts surveyed by LSEG had actually anticipated profits of $1.16 and $8.74 billion in income. However the business sees an adjusted gross margin of 54.5% for its present quarter, conference StreetAccount’s agreement of 54.5%. The in-line margin assistance, integrated with lofty appraisals heading into the report, kept shares under pressure after the profits release. The stock, which traded at a raised forward price-to-earnings ratio of 41, fell more than 5% in the premarket. “Drilling to what we believe was the most likely point of contention (thinking about income results/guide were sturdily ahead of sell-side/buy-side bogeys, and gross margin remained in line), an absence of more powerful operating utilize in the design seems the most popular issue,” composed JPMorgan. Citi, on the other hand, blamed slowing quarter-over-quarter development in AMD’s expert system company as a headwind. Here’s what sell-side experts needed to state. Goldman Sachs: neutral ranking, $210 cost target Expert James Schneider’s target suggests about 16% drawback from Tuesday’s close. “We anticipate the stock to be variety bound following a beat-and-raise quarter driven by benefit in the Datacenter and Customer sections, mostly balanced out by lower margins– versus a background of raised expectations. … On the margin, our company believe AMD’s strong Datacenter ramp is basically in line with the Street expectations, however the absence of near-term monetary utilize– both on gross margin and OpEx– might be considered as frustrating. We stay Neutral on the stock provided the prospective financing dangers connected to business and most likely high client concentration for AMD’s GPU datacenter company. Nevertheless, we might be more useful if we get incremental self-confidence on the income stream and execution timeline for this handle the coming quarters.” Deutsche Bank: hold, $250 Deutsche Bank’s projection is less than 1% far from AMD’s Tuesday closing cost of $250.05. “In general, our company believe AMD provided another strong report/guide, albeit with little modification to our quotes. We eagerly anticipate getting updates on AMD’s monetary targets on the co’s upcoming expert conference, with our basic expectation being for AMD’s strong innovation roadmap and execution to drive strong development for the next couple of years. Nevertheless, with these favorable qualities/ chauffeurs shown in our design and little modification to our quotes (~$ 10 EPS in 2027), we preserve our Hold ranking with a $250 P/T (P/E of 25x).” Morgan Stanley: equal-weight, $260 Morgan Stanley’s target requires 4% upside moving forward. “AMD had upside in 3q, assisted in line with our estimate/slightly above street for 4q profits, with specific strength in video gaming however upside in information center. Mgmt was useful on MI355 however plainly the focus is next year’s rack scale items.” Citi: neutral, $260 “The other day after the close, AMD reported great outcomes and assistance driven by greater customer, video gaming, and information center sector sales (integrated 91% of 3Q25 income). The stock traded down AH our company believe due to slowing QoQ development in its AI company. We anticipate the business to raise its long-lasting assistance at its expert day next week and we anticipate AMD’s AI sales to grow 174% in C26E, although our company believe the buy-side is currently anticipating that. We raise our cost target however preserve our Neutral ranking provided high expectations from the buy-side.” JPMorgan: neutral, $270 Expert Harlan Sur’s projection is 8% above Tuesday’s close. “Outcomes and assistance were sturdily ahead of expectations, however plainly insufficient to calm some financiers provided the after-hours action on the stock. Drilling to what we believe was the most likely point of contention (thinking about income results/guide were sturdily ahead of sell-side/buy-side bogeys, and gross margin remained in line), an absence of more powerful operating utilize in the design seems the most popular issue, with running margin down Y/Y in Q3 and indicated lower once again Y/Y in Q4, even with income up ~ 36% and ~ 25% Y/Y, respectively. … We stay on the sidelines though as the stock appears completely valued to us at these levels, and we are cognizant of the execution dangers that lie ahead for AMD as it ramps its very first rack-scale AI system next year.” Barclays: neutral, $300 Barclays’ cost target corresponds to 20% benefit. “No brand-new AI statement with profits however the business sounded positive throughout the CPU/GPU portfolio with a brand-new LT design likely at the advertisement next week. The AI story is well comprehended with the OAI offer layering into numbers in the 2H of CY26 and the MI450 series representing another significant inflection for the Impulse line of product. … Net-net, we continue to see AMD as one of the very best methods to play AI with the expert day looking more like a favorable driver.” UBS: purchase, $300 “Set versus the rally in shares into this report, we might see a pullback tomorrow. That stated, we would not get charming here ahead of the Expert Day since AMD most likely sets out a course of $15-20 in EPS later on this years and AWS is most likely still out there as a driver too (most likely at re-Invent in early December, we believe).”
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