MarketMoodz
Morgan Stanley Names AMD and Costco Among Top Earnings Picks
Morgan Stanley flags Advanced Micro Devices and Costco Wholesale as high-conviction ideas for the Q4 earnings season, with Southwest Airlines also in the bank’s basket. The note highlights catalysts tied to a tight AMD server CPU cycle and Costco’s reaccelerating comps as easy compares fade. AMD reports next Tuesday after market close; COST follows on Wednesday.
Key Takeaways
- AMD and Costco are named as Morgan Stanley's top ideas for Q4 earnings.
- AMD reports next Tuesday after market close; COST on Wednesday; Southwest Airlines is also cited.
- Analysts Joseph Moore (AMD), Simeon Gutman (COST), and Ravi Shanker (LUV) are the named researchers.
- Price targets cited: AMD $260, Costco $1,130, Southwest $50.
- Context emphasizes a tight server CPU market for AMD and reacceleration in Costco’s comps.
People Involved
- Joseph MooreMorgan Stanley Equity Analyst (AMD coverage)
- Simeon GutmanMorgan Stanley Equity Analyst (COST coverage)
- Ravi ShankerMorgan Stanley Equity Analyst (LUV coverage)
Entities Involved
- Advanced Micro Devices, Inc. (AMD)Semiconductor company
- Costco Wholesale Corp. (COST)Retail warehouse club operator
- Southwest Airlines Co. (LUV)Airline
- Morgan StanleyInvestment bank issuing top-picks note
MarketMoodz Analysis
For investors, the call signals upside if AMD can sustain data-center demand and if Costco’s momentum persists as easy comparisons fade, potentially allowing outsized earnings beats to lift the stock prices into results. The inclusion of Southwest Airlines broadens the cross-sector tilt, underscoring a multi-vertical earnings playbook for the season.
Historically, banks’ top-pick lists often precede meaningful earnings outperformance, and Morgan Stanley’s framing of AMD and COST reflects valuation, supply-chain dynamics, and demand trends that could drive upside should results beat estimates. Watch for guidance, especially data-center commentary from AMD and consumer spend trends at Costco, as well as any updated targets that could recalibrate near-term returns.
What to watch next: monitor AMD and COST earnings, assess management commentary on data-center pipelines and global demand, and track how any changes to price targets or sentiment shape near-term stock performance.
Source: Original Article
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