Latest news with #Danely
Business Insider
15 hours ago
- Business
- Business Insider
AMD Stock Gets a Price Target Boost from Citi's Top Analyst Ahead of Q2 Earnings
Advanced Micro Devices (AMD) will report its Q2 2025 earnings results on August 5. Ahead of the report, AMD stock got a bullish upgrade from Citi's Top analyst Christopher Danely, who raised his price target to $165 from $145. The new price target indicates a 5% upside from current levels. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. However, he maintained a Hold rating on the stock, warning that the China-related gains from the sale of MI308 chips may be short-lived. Danely ranks #644 out of 9,889 analysts tracked on TipRanks. He boasts a 66% success rate and an average return per rating of 11.00%. Analyst Sees Short-Term Upside, But Stays Cautious The five-star analyst believes AMD stock could continue to move higher in the near term, as excitement around AI remains strong. Danely pointed out that investors are growing more optimistic ahead of AMD's earnings, and the broader market continues to favor chip stocks tied to AI. As a result, Danely raised his price target to $165, based on 44x expected 2026 earnings. The new price target reflects growing optimism that rising demand for AI chips could lift AMD stock in the near term. Despite the price target bump, the analyst prefers to remain on the sidelines for now, noting that much of the AI-driven optimism may already be reflected in AMD's share price. Danely cautioned that investor expectations might be too high going into earnings, and a clearer view of the company's outlook will only emerge once results are out in August. What to Expect from AMD's Q2 Earnings Wall Street analysts expect AMD to report earnings of $0.48 per share for Q2, down 30% from the year-ago quarter. Meanwhile, analysts project Q2 revenues at $7.41 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of about 27%. Is AMD a Good Stock to Buy? On TipRanks, AMD stock has a Moderate Buy consensus rating based on 25 Buys and 10 Holds assigned in the last three months. The average AMD price target of $144.45 suggests a downside potential of 7.99% from its current price. Year-to-date, shares of the company have gained about 30%.
Business Insider
4 days ago
- Business
- Business Insider
AMD Stock Rally Is ‘Empty Calories,' Says Citi's Top Analyst
Citi's top analyst, Christopher Danely, calls the recent rally in AMD stock (AMD) 'empty calories' because he believes the chip ban can be reinstated at any time. Yesterday, Advanced Micro Devices rallied 6.4% after President Donald Trump lifted the ban on export of artificial intelligence (AI) chips to China. The news also boosted shares of major semiconductor companies, including Nvidia (NVDA), which rose 4% to reach a new all-time high of $172.40. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Danely has a 'Hold' rating on AMD stock and a price target of $145, which implies 6.8% downside potential from current levels. Danely ranks #588 out of 9,861 analysts tracked on TipRanks. He boasts a 66% success rate and an average return per rating of 11.40%. Here's Why Citi Is Skeptical About the AI Ban Reversal The easing of export restrictions means AMD can now resume shipments of its MI308 AI chips to China. The White House had previously imposed a ban on the export of advanced AI chips to China due to national security concerns. Notably, AMD was expected to take an $800 million hit from the ban, while Nvidia faced a larger $5.5 billion impact. However, the situation has changed following the easing of trade tensions between the U.S. and China. Danely has a rather skeptical view on the news. He noted that the resumption of MI308 chip sales to China is 'not sustainable' as they could be banned again. The U.S.-China trade relations remain fragile, and even a minor incident could prompt substantial policy shifts. Having said that, Danely believes that the Trump administration's $70 billion investment in Pennsylvania for AI and energy could be highly beneficial for chipmakers, including AMD, NVDA, Broadcom (AVGO), and Micron (MU). AMD Is Positioning as a Serious Rival to Nvidia For years, AMD has been seen as secondary to Nvidia, with the latter's advanced AI chips and GPUs (Graphics Processing Units) commanding global attention. However, AMD is rapidly advancing with its own chip innovations to compete more effectively with Nvidia. Recently, AMD launched its new line of MI350 AI chips, which are expected to be nearly 30% cheaper than Nvidia's comparable chips. Also, AMD's MI355X features high-bandwidth memory (HBM), which is reportedly three times that offered by Nvidia's Blackwell B200. Is AMD a Good Stock to Buy? Despite the current optimism surrounding Advanced Micro Devices, analysts remain divided about its long-term outlook. On TipRanks, AMD stock has a Moderate Buy consensus rating based on 25 Buys and 10 Hold ratings. Also, the average AMD price target of $135.97 implies 12.6% downside potential from current levels. Year-to-date, AMD stock has gained nearly 29%.
Yahoo
08-07-2025
- Business
- Yahoo
AMD Pops as Citi Lifts Target to $145 Ahead of Q2 Earnings
Advanced Micro Devices (NASDAQ:AMD) shares climbed about 2% in pre-market trading on Tuesday after Citi (NYSE:C) analyst Christopher Danely raised his price target. Warning! GuruFocus has detected 3 Warning Signs with AMD. Danely lifted his target on AMD to $145 from $120 while maintaining a Neutral rating. He cited improving industry dynamics that could support chipmakers in the coming quarters. Wall Street expects AMD to report second?quarter earnings on Aug. 5, with consensus estimates at $0.49 per share in EPS and $7.41 billion in revenue. Any beat on those forecasts may reinforce bullish sentiment. Danely noted that end?market demand remains solid and companies appear to be rebuilding inventory, which may underpin AMD's growth. His revised outlook reflects a gradual rebound in semiconductor orders rather than a sharp turnaround. The chipmaker industry has experienced stability after a long period of stagnation, and the expansion of AMD's roadmap for data centres and PC chips offers additional attractions to the company. As the chip recovery drama continues, AMD may win more analysts if it exceeds expectations regarding future results. This article first appeared on GuruFocus.
Yahoo
16-06-2025
- Business
- Yahoo
Citi Sees Micron (MU) Climbing to $130 Supported by Better DRAM Pricing
Micron Technology Inc. (NASDAQ:MU) is one of the right now. On June 9, Citi analyst Christopher Danely reaffirmed his Buy rating on Micron and raised the stock's price target to $130 from the previous $110. Danely's outlook is driven by expectations of stronger DRAM pricing, which he believes will surpass initial projections. He now anticipates a quarterly price increase of at least 5%, well above the earlier forecast of 2%. This upward trend in pricing is expected to support Micron's revenue and earnings growth over the coming quarters. An automated manufacturing production line of semiconductor components on an assembly line. In response to these improving market conditions, Danely has revised his financial estimates for the company and now projects stronger sales and higher EPS for fiscal years 2025 and 2026. These higher estimates have resulted in an increase in price target. Although tariff-related developments have subsided, geopolitical tensions remain high. On June 9, Reuters reported that Chinese memory chipmaker Yangtze Memory Technologies (YMTC) filed a lawsuit in Washington, accusing Micron Technology Inc. (NASDAQ:MU) of orchestrating a disinformation campaign. The lawsuit claims Micron falsely portrayed YMTC's chips as containing spyware and posing a national security threat. Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
20-05-2025
- Business
- Yahoo
AMD Sells ZT Fab Unit, Bolsters AI Talent to Challenge Nvidia
AMD (NASDAQ:AMD) offloads ZT Systems' manufacturing arm for $3 billion while snapping up its 1,200-strong engineering team to sharpen its edge against Nvidia (NASDAQ:NVDA) in the data-center GPU race. Warning! GuruFocus has detected 4 Warning Signs with AMD. Citi Research analysts, led by Christopher Danely, note that last August's $4.6 billion ZT deal has been split: Sanmina will acquire the factory business for $2.55 billion in cash and stock plus $450 million in earn-outs, while AMD retains the engineers for roughly $1.6 billionabout $1.33 million apieceto accelerate hyperscaler deployments and bolster system-level expertise. Danely argues that additional system experience and faster deployment times should help AMD close the gap on Nvidia's market share. Under the agreement, Sanmina becomes AMD's preferred manufacturing partner for cloud-rack and cluster-scale AI solutions, reflecting a strategic pivot from in-house production to a fab-lite model. The transaction, expected to close near year-end 2025, underscores AMD's focus on high-margin chip design over capital-intensive fabs. Citi kept its Neutral rating and $100 price target on AMD, highlighting the balance between near-term dilution from the $1.6 billion engineering buyout and long-term gains from faster product rollouts. AMD, which derives roughly 30% of sales from PCs, faces stiff competition not only from Nvidia in AI GPUs but also from Intel (NASDAQ:INTC) in data-center CPUs. By beefing up its in-house design team and offloading manufacturing risk, AMD aims to streamline R&D investment and speed time to market for MI300 and future MI400 data-center accelerators. Why It Matters: Retaining ZT's engineering talent while outsourcing production could deliver faster hyperscaler deployments and help AMD narrow the performance and deployment gap with Nvidia's entrenched data-center GPU ecosystem. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
