AMD’s Price Target Slashed by Investment Bank

Earlier today, investment bank TD Cowen cut its price target on chip maker AMD (AMD) to $110 from $135. However, TD Cowen kept a Buy rating on the name.

Why TD Cowen Slashed Its Target on AMD

Estimates for the revenue that AMD will obtain from its GPU chips for data centers have dropped in the first half of this year, the investment bank noted. What’s more, TD Cowen acknowledged that adverse macroeconomic conditions could cause the estimates for the tech giant to fall further.

Why TD Cowen Remains Bullish on AMD

The outlook for AMD’s upcoming GPU chip, the MI355X, is positive, according to TD Cowen. In fact, the investment bank believes that the chips, due to be released around the middle of this year, could drive AMD stock higher.

Further, the company’s overall fundamentals, including its revenue growth, are strong, while its balance sheet is also solid, according to TD Cowen.

The Recent Price Action of AMD Stock

In the last month, the shares are down 18%, while they have declined 32% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.