Bernstein's Stacy Rasgon: Investors may be comparing AMD's beat to Intel

Summary

Stacy Rasgon of Bernstein discusses AMD's Q2 results, calling them solid despite the stock's decline. He attributes the sell-off to elevated expectations after Intel's strong report, while highlighting the upcoming Helios AI ramp as a Q4 catalyst. Server CPU demand remains robust, and he reiterates an outperform rating and $600 price target on AMD.

• AMD Q2 results beat on revenue and EPS; gross margins were in line.
• Stock fell ~4.5% in after-hours, possibly due to high expectations following Intel's strong earnings.
• Data center segment expected to accelerate in the second half of the year.
• The Helios/Mi450 AI product ramp is viewed as a Q4 story, offering further upside.
• Server CPU demand is so strong that even less-competitive Intel products are selling well, boding well for AMD's offerings.
• Rasgon maintains an outperform rating and $600 price target on AMD.
• Key questions on the call include Helios ramp timing, revenue from Anthropic, and the PC client outlook.