AMD data center revenue outlook dropped at Baird
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AMD (NASDAQ:AMD) took a hit from Baird as the investment firm lowered its data center revenue estimate for next year. 
The firm pushed its original outlook for meaningful artificial intelligence market share and ramp timing for AMD's upcoming MI300 GPU due to lack of design wins outside of supercomputing applications so far and in the absence of a well-established software ecosystem.
Shares fell 1% on Thursday amid choppy trading for the broader market.
The firm maintained its Outperform rating on the stock and lowered its price target to $125 from $170.
On top of that, Nvidia's (NVDA) GH200 GPU demand is strong across all customers, representing a new layer of competition starting next year while proving cannibalistic to x86 architectures, Baird wrote in a note.
That said, AMD (AMD) should see a mid-single-digit sequential rebound in gaming revenue in the fourth quarter after a trough in the third, in part driven by China. 
Baird modeled a 5% market share in AI for AMD after 2024. 
On the company's earnings call in August, AMD (AMD) Chair and CEO Dr. Lisa Su said that AI customer engagements grew seven times sequentially, aided by the MI 250 and MI300 hardware and software.
She also explained that AMD's (AMD) AI strategy is focused on three areas - having a broad portfolio of multi-generation roadmap for GPUs and CPUs; extending the software platform to be deployed easily; and continue collaboration - all of which is on track.
Customer interest in the MI 250 and MI 300 accelerators are "very high," with continued engagements with top tier cloud providers, with production on track to ramp for the MI 300 in the fourth-quarter, Dr. Su added.
Shares of the company are up more than 60% year-to-date.

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