"AMD's AI Update and Q4 Earnings: Analysts' Stock Price Targets and Market Expectations"

As AMD's earnings report approaches, Raymond James analyst Srini Pajjuri has downgraded his rating on the stock from "strong buy" to "outperform," citing elevated AI revenue expectations and a modest price target increase. Pajjuri highlighted AMD's traction in the AI market with major cloud customers but expressed caution about the company's potential share gain and stock multiple compression. He believes AMD's AI GPUs will need to contribute significantly to earnings to justify the stock's current valuation, especially in comparison to market leader Nvidia.