12:56 PM EDT, 07/31/2024 (MT Newswires) -- Advanced Micro Devices ( AMD ) is set to see continued share gains in notebook and server processors through 2025 as it executes its product roadmap, Morgan Stanley said in a Wednesday note.

Morgan Stanley said it expects the company's core business to "accelerate meaningfully" as the PC market continues to recover and server upgrades return. "If those upgrades come back, we would expect AMD to have disproportionate share of those bigger projects," the investment firm noted.

Even the company's increased Q3 revenue guidance of about $6.7 billion at the midpoint reflects "strong momentum across compute businesses," Morgan Stanley said. Artificial intelligence could also be a growth driver for AMD, but flagged potential delays in the company's deployments of new AI silicon, according to the note.

Morgan Stanley has an equal-weight rating on Advanced Micro Devices ( AMD ) and raised its price target of $178 from $176.

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