Morgan Stanley's AMD (NASDAQ:) stock price target was cut to $177 from $193 in a note Monday. The firm maintained an Overweight rating on the stock.

The investment bank said that despite their long-term concerns, they actually have a constructive view of the company and stock over the long term. However, they see a mixed picture on earnings.

"AMD is one of the biggest 'battleground' stocks this earnings period, amid mixed conditions in the core business and longer-term questions in AI around NVIDIA's coming Blackwell chip," stated analysts at the bank. "Our view is constructive longer term, but we don't see this quarter as a catalyst given those factors."

In terms of the core business, it is believed that AMD's first quarter and second quarter guidance should be roughly in line.

"PCs look slightly weaker than seasonal heading into 2q, but servers should be stronger, and XLNX is bottoming out," added Morgan Stanley. "2h numbers depend on a recovery in the XLNX business, not yet in evidence, or strength elsewhere, and we see some potential challenges to 2h."

Furthermore, the bank says its views have not changed despite longer-term questions in AI around NVIDIA's coming Blackwell chip and its willingness to price aggressively.

Overall, on that note, they feel AMD has proven to be resourceful, and Morgan Stanley anticipates the company can react on the product front.