'Don't Count AMD Out,' Says Morgan Stanley About the Stock - TipRanks.com

Despite AMD's recent challenges in the generative AI market and modest revenue growth compared to Nvidia, Morgan Stanley analyst Joseph Moore advises against dismissing AMD as an investment. Moore highlights AMD's potential in server upgrades and competitive strategies against Nvidia's pricing. He maintains an Overweight rating on AMD with a price target suggesting a 17% upside, indicating a strong buy consensus among analysts.

Although AMD's Q1 earnings exceeded expectations, investor sentiment dipped due to less optimistic future projections amidst the AI boom. However, Moore sees AMD’s current lower stock price as a buying opportunity, emphasizing the company’s relevance in AI and potential for innovation to compete with Nvidia. The overall analyst consensus points to a robust future for AMD, with a potential 29% increase in stock value.