Street View: Strong servers buy time for AMD as AI gets ready to clock in

Advanced Micro Devices AMD.O said on Tuesday that it expects a modest decline in quarterly revenue, as investors assess the company's position relative to Nvidia NVDA.O in the rapidly expanding AI chip market

Shares slump 7.2% before the bell

AI APPETITE HOLDS FIRM

Morgan Stanley ("equal-weight," PT: $255) says results were "quite good," adding that confidence in server growth remains high, while co's rack‑scale AI platform remains a key "show‑me" factor for the stock as attention turns to a bigger MI455 volume ramp later in the year

RBC Capital Markets ("sector perform," PT: $230) says AI‑related demand remains supportive, adding that server CPU growth and ongoing GPU ramps should continue through the year even as near‑term catalysts remain limited

Jefferies ("buy," PT: $300) says demand for server CPUs remains "red hot," adding that AMD's next‑generation MI450X AI chips are still on track for a ramp in the second half of the year, with broader data‑centre growth expected to remain strong

TD Cowen ("buy," PT: $290) says the quarter was "noisy", but adds that momentum in server CPUs and data‑centre GPUs remains intact, with the company still on track for an "all‑important" ramp of its MI450 AI platform later this year