A post-earnings dip in Advanced Micro Devices Inc (NASDAQ: AMD) is an opportunity to buy a quality name at a discount, says a Barclays analyst.

Shares of AMD are down some 7.0% at writing after the chipmaker issued in-line guidance for its current financial quarter.

Still, Blayne Curtis reiterated his “overweight” rating on the semiconductor giant this morning that he continues to see as well positioned after its Q1 earnings report.

Note that AMD stock is now down about 30% versus its year-to-date high.

AMD now expects to sell about $4.0 billion worth of AI chips in 2024 now that giants including Oracle, Meta Platforms, and Microsoft are already using its MI300X accelerator.

The Nasdaq-listed firm had previously guided for $3.5 billion in full-year artificial intelligence chips sales. In comparison, its bigger rival Nvidia Corp, however, stands at over $18 billion in sales – most of which come from AI chips.

That is perhaps why analysts at HSBC did lower their price objective on AMD stock slightly to $220 on Wednesday. But their new target still suggests a whopping 50% upside from here.

Late last year, Advanced Micro Devices bought Nod.AI to expand its footprint in artificial intelligence as Invezz reported here.

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