The AMD (NASDAQ:AMD) price target was lifted to $185 from $130 per share at TD Cowen on Thursday, with analysts maintaining an Outperform rating on the stock.
Analysts told investors in a Q4 preview note that Challenges in Gaming and the correction in Embedded are reflected in Street estimates already.
Meanwhile, "server share gains continue to help assuage TAM uncertainty...all while the potential of MI300 within the AI TAM is still ahead for AMD with potentially large upside over the next couple years as an increasingly capable GenAI alternative," analysts wrote.
"Into 4Q23, we expect solid results relative to guidance with Gaming and Embedded still weak and with Client recovering and Datacenter printing a much stronger close to the year," they added.
Within Client, the investment bank is encouraged by the ongoing PC market stabilization and improvement and normalization of inventory levels, driving expectations for typical seasonal demand.
"As a result, we continue to see AMD as well-positioned to continue to gain profitable share in the premium and commercial portions of the market ahead of 2H AI PC launches," said analysts.
AMD shares are up over 2% Thursday at the time of writing.