Advanced Micro Devices' (AMD) Q4 results and Q1 outlook failed to reflect the potential incremental value from central processing unit shortages, leading to the recent stock sell-off, Wedbush Securities said in a Wednesday note.
The company reported Q4 adjusted earnings late Tuesday of $1.53 per diluted share, up from $1.09 a year earlier, as revenue increased to $10.27 billion from $7.66 billion. For Q1, Advanced Micro Devices said it expects revenue of about $9.80 billion, plus or minus $300 million.
Wedbush said the results reflect "muted" growth from the company's artificial intelligence silicon products. The investment firm also noted that it continues to have "less visibility" into Advanced Micro Devices' artificial intelligence ramp, but the company remains a considerable second source after Nvidia (NVDA).
Wedbush Securities reiterated its outperform rating on Advanced Micro Devices, with a $290 price target.
Price: 202.06, Change: -40.05, Percent Change: -16.54
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