Citi analysts said in a note Monday that Advanced Micro Devices (NASDAQ:AMD) is "by far the most controversial stock" in the U.S. semiconductor group.
The analysts declared that there are "more subplots than Game of Thrones," with investors lined up on both the positive and negative side of the AMD debate.
"We believe many investors expect a guidance cut, but many bulls expect it not to matter given a sharp ramp in AI revenue in 4Q23 and C24," they wrote, looking ahead to the company's next earnings release.
"We believe the next debate will focus on whether gross margins for AMD’s AI business (MI300) are accretive or dilutive."
AMD shares are up more than 67% in 2023, although it has declined 4.6% in the last week, trading not far below the $111 per share mark.