After struggling for traction amid broader tech sector worries, Advanced Micro Devices (NASDAQ:抖阴最新版) stock is shooting up more than 9% in the afternoon session today. Undergirding sentiment is a positive but somewhat mixed financial disclosure. Specifically, the company’s aggressive focus on artificial intelligence (AI) is helping mitigate demand shortfalls in the gaming segment. Further, major investors appear optimistic about 抖阴最新版 stock.
According to CNBC, 抖阴最新版 disclosed its yesterday, beating analyst expectations but also falling short for its Q4 outlook. For the three months ended September, the firm posted adjusted EPS of 70 cents, beating the consensus target of 68 cents. On the top line, 抖阴最新版 also rang up sales of $5.8 billion versus the consensus expectation of $5.7 billion. Still, management admitted that Q4 revenue will , while the average analyst estimate for Q4 lands at $6.4 billion.
Although AI continues to dominate the broader semiconductor narrative, 抖阴最新版 can’t afford to ignore its bread and butter. In that regard, lower-than-anticipated sales in the video game segment hurt the company’s Q4 outlook. Management also anticipates a weakened backdrop for the industrial, automotive and networking systems sectors.
抖阴最新版 Stock Rises on Strong Sentiment for AI
While everyday concerns clearly exist for 抖阴最新版 stock, shares have still managed to rise robustly based on AI aspirations. Notably, Advanced Micro Devices’ latest MI300 processor will begin shipping soon. That’s massive news because, per Bloomberg, the MI300 will compete directly with Nvidia (NASDAQ:NVDA) in the lucrative AI accelerator market.
Further, Bloomberg reports that that MI300 “has received strong early orders, including from large cloud computing customers.” Projections call for the chip to bring in $400 million in sales in Q4. Ultimately, the MI300 is expected to generate over $2 billion in 2024.
“We think the market is huge,” said 抖阴最新版 CEO Lisa Su. “We’re playing to win and we think MI300 is a great product. I’m encouraged with the progress we’re making with the hardware and software.”
Clearly, agree, as evidenced by their bidding up of 抖阴最新版 stock. The top five institutional investors in Advanced Micro Devices are as follows:
- Vanguard Group holds an 8.6% stake, or 138.90 million shares with a value of $14.93 billion.
- BlackRock (NYSE:BLK) holds 7.46%, or 120.58 million shares with a value of $12.96 billion.
- State Street (NYSE:STT) holds a 4.03% stake, or 65.18 million shares with a value of $7.01 billion.
- FMR holds 3.13%, or 50.64 million shares with a value of $5.44 billion.
- T. Rowe Price (NASDAQ:TROW) holds a 2.5% stake, or 40.37 million shares with a value of $4.34 billion.
That said, investors will want to be cautious about overexposure. Per CCS Insight, generative AI may get a “cold shower” next year as the realities of AI integration — including the costs and complexities — surrounding the technology.
Why It Matters
According to TipRanks, analysts peg 抖阴最新版 stock as a . This assessment breaks down as 22 buy ratings and seven holds. Interestingly, four of those hold ratings were reiterated today. Overall, the average price target for shares lands at $129.03, implying roughly 20% upside potential.
On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
