Chief executive Lisa Su’s semiconductor giant actually beat analyst estimates for overall sales and earnings, with $7.1 billion in first-quarter revenues rather than an expected $7 billion. It even reported $3.86 billion in quarterly data-center sales, representing a 69% year-on-year increase, but analysts had been hoping for $4.14 billion.

AMD certainly has a better story to tell than Intel does. As Su said in an earnings call Tuesday, Meta is using AMD’s MI300X AI chips to serve its largest Llama model through its Meta AI service, and Microsoft is using them to power OpenAI-based Copilot services and handle other workloads. IBM and Dell are also offering or plan to offer AI services on the MI300X platform.

Wall Street isn’t convinced. On Wednesday, BofA Securities lowered its price target for AMD from $155 to $135 while maintaining its neutral rating for the firm. Some of its peers, such as Goldman Sachs and KeyBank Capital Markets, recently lowered their AMD price targets on fears around its competitiveness in the AI-chip and accelerated-computing spaces.

Source: FORTUNE