Advanced Micro Devices may have disappointed investors with its Advancing AI event Thursday, but analysts said they’re still bullish on the chipmaker’s growth prospects.

Advanced Micro Devices (AMD) may have let down investors at its “Advancing AI” event on Thursday, but analysts remain optimistic about the company’s growth prospects. AMD shares dropped 4% following the event, which introduced a range of new AI chips but lacked the anticipated outlook boost or new partnerships. Despite this, analysts at Jefferies continue to see potential, citing “enough demand to go around” for AMD’s AI products.

While investors were hoping for more direct competition with Nvidia (NVDA) and an updated AI revenue guidance of $5 billion, Jefferies believes those updates will likely come during AMD’s earnings call. Bank of America analysts also weighed in, noting that AMD’s latest Instinct MI325X GPU still trails Nvidia’s Blackwell chips by about a year, leaving AMD in a catching-up position for now. However, Jefferies is confident that AMD’s MI350, expected next year, will offer stronger competition.

AMD shares recovered slightly on Friday, gaining just over 2%. Jefferies maintained a “buy” rating for AMD, with a price target of $190, while Bank of America held its target at $180. As of Friday, 13 of 17 analysts tracked by Visible Alpha also rated AMD as a “buy” or equivalent, with a consensus target of $192.13.

Though the AI event may not have delivered the immediate boost some hoped for, analysts continue to view AMD’s AI chip lineup as a key growth driver in the rapidly expanding AI infrastructure market.