Advanced Micro Devices (NASDAQ: AMD) stock jumped over 2% on Tuesday thanks to Citi’s bullish stance following strong February notebook shipments.
Citi, a prominent financial institution, has reaffirmed its Buy rating for Advanced Micro Devices (AMD), maintaining a price target of $192. The move is based on the firm’s analysis of US Semiconductor stocks, highlighting stronger-than-expected notebook shipments in February.
In February, AMD reported a 2% decline in notebook shipments compared to the previous month. However, this performance outperformed expectations, showing resilience. Citi credits this resilience to a notable increase in demand for Dell’s commercial PCs. The firm welcomed this development following a less promising January, marked by notebook shipments failing to meet expected levels.
Analysts at Citi have adjusted their first-quarter 2024 estimate for notebook shipments, revising the anticipated decline from 14% to 12%. This updated forecast, notably better than the usual seasonal downturn of 17%, is credited to the launch of new products.
However, Citi remains cautious, noting the likelihood of continued fluctuations in monthly notebook shipment figures throughout 2024 as the PC recovery cycle stabilizes. This follows a trend of mixed results, with February’s encouraging performance juxtaposed against January’s disappointments.
Citi’s earnings per share (EPS) forecast for AMD in the calendar year 2024 stands at $2.75, which falls below the consensus estimate of $3.40.
Advanced Micro Devices (NASDAQ: AMD) Stock Movement
AMD stock rose 2.20% to close at $202.76 on Tuesday. The traders had exchanged hands with 68,603,175 (68.60 million) shares compared to the average daily trading volume of 75.83 million.
