The big bank report greatly promotes the target price of AMD (AMD.US) to $193.The current level prefers NVIDIA (NVDA.US).
Morgan Stanley said in a report that it is still optimistic about the long-term development opportunities of AMD (AMD.US), but believes that the development of artificial intelligence ecosystem will take time. The target price rose from $128 to $193, maintaining a "overweight" rating.
The bank pointed out that after a difficult year last year, AMD's core business was optimistic about its prospects because it believed that all business would recover this year except for strong growth in artificial intelligence. However, AMD shares have risen more than 75 per cent since the last earnings announcement, and informal expectations for MI300 chip sales seem to equate the supply chain with revenue, thus weakening its enthusiasm for the stock to some extent.
Morgan Stanley expects AMD's AI sales in fiscal 2024 to be well above its target of $2 billion, but while AMD is still developing the ecosystem, it will not prematurely assume that first-year sales will be high, nor will it prematurely define first-year opportunities. In the field of artificial intelligence, the bank prefers NVIDIA (NVDA.US).
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