AMD’s Price Target Cut to $125 at Baird

HSBC upgraded Advanced Micro Devices (NASDAQ:AMD) to Buy from Hold, setting a new price target of $200 as optimism builds around the company’s AI product roadmap and revenue potential. As a result, the company’s shares rose more than 4% today.

The firm sees a significant upside in AMD’s FY2026 AI revenue, driven by stronger-than-expected pricing for its newly launched MI350 series chips.

Back in January, HSBC had flagged concerns over AMD’s competitiveness in the AI GPU space, but recent developments have flipped that view. The latest forecast now anticipates $15.1 billion in AI revenue for FY2026—roughly 57% above the current market consensus of $9.6 billion. That sharp revision is based on AMD commanding a higher pricing premium than initially expected.

Further boosting confidence is the upcoming MI400 rack architecture, set to debut in 2026. While still early to model financial impact, HSBC believes the long-term potential could further bolster AMD’s AI positioning.

Despite a recent 14% rally in AMD shares following its AI Day in June, HSBC argues that the market has yet to fully price in the coming wave of AI-driven growth. The firm expects this momentum to drive a broader re-rating for the stock, with significant room for upside from current levels.

Advanced Micro Devices Inc (NASDAQ:AMD) is a prominent player in the semiconductor industry, known for its innovative processors and graphics cards. Competing with giants like Nvidia, AMD has carved a niche in the market with its cutting-edge technology. Recently, HSBC analyst Frank Lee set a price target of $200 for AMD, suggesting a potential 38.77% increase from its current price of $144.12.

The optimism surrounding AMD is largely due to its promising AI chip pipeline. Frank Lee upgraded AMD's rating from "hold" to "buy," citing the company's advancements in AI graphics processing units. These units, particularly the MI350 data center processor, are expected to command a higher pricing premium. This development has led to a 3.1% rise in AMD's stock, reaching $142.69.

AMD's recent performance has been impressive, with its stock surging by 80% from its 52-week lows. The company's latest Instinct accelerators have helped it catch up with Nvidia, indicating potential significant upside to AMD's fiscal 2026 AI revenue. Despite a 12-month consensus target price of $136.57, analysts see room for further price-target hikes.

However, not all analysts share the same enthusiasm. Goldman Sachs initiated coverage with a neutral rating and a $140 price target. As AMD prepares to report its fiscal second-quarter results on August 5, the market remains watchful. The stock has achieved a 17.9% increase year-to-date, navigating through global trade tensions.

Today's trading reflects a 3.78% increase in AMD's stock price, reaching $143.64. The stock has traded between $141.85 and $145.82, with a market capitalization of approximately $232.9 billion. As highlighted by Rick Ducat, AMD's recovery from its 52-week lows is noteworthy, showcasing the company's resilience in a competitive market.

• Bernstein downgrades Advanced Micro Devices (NASDAQ:AMD) to "Reduce" with a current stock price of $141.90.
• AMD's gross margin reached 53.7% in Q1 2025, marking the fifth consecutive quarter of increase.
• The company's new GPU products for data centers and strong demand for Ryzen CPUs are key drivers for future growth.

On June 30, 2025, Bernstein adjusted its rating for Advanced Micro Devices (NASDAQ:AMD), changing it to "Reduce." At the time of this update, AMD's stock price was $141.90. Despite this rating change, AMD is poised for significant growth, driven by its new GPU products aimed at expanding data centers in the latter half of the year.

AMD is often overshadowed by Nvidia in the AI-driven data center accelerator market, where Nvidia holds a leading position. However, AMD sees ample opportunity for its own growth. The company's management is optimistic about the potential of these new products to act as a catalyst for the stock. Under the leadership of CEO Lisa Su, AMD has consistently exceeded expectations.

AMD has reported a rise in its gross margin for the fifth consecutive quarter, reaching 53.7% in the first quarter of 2025. This increase is attributed to strong demand for high-end Ryzen processors and data center products, which have driven higher average selling prices (ASPs) and a richer product mix. The company anticipates its gross margin to be around 54% in the second quarter, excluding an $800 million charge related to MI308 export controls.

The demand for Ryzen CPUs in both gaming and commercial PCs is contributing significantly to this favorable product mix, supporting the ongoing margin expansion. Additionally, the data center segment, which includes EPYC CPUs and Instinct GPUs, continues to bolster AMD's financial performance. Despite Nvidia's dominance, AMD's recent data center chips are gaining significant traction, and the company has been gradually capturing PC market share from Intel over the years.

Currently, AMD is trading at a conservative valuation, presenting an attractive risk-reward scenario for investors, even without the need for multiple expansion. The current stock price of AMD is $141.90, reflecting a decrease of 1.91, or -1.33% in percentage terms. Over the past year, AMD's stock has reached a high of $187.28 and a low of $76.48. The company's market capitalization stands at approximately $230.08 billion, with today's trading volume at 42.61 million shares.

Melius Research upgraded Advanced Micro Devices (NASDAQ:AMD) to Buy from Hold, boosting its price target to $175 from $110, citing a shift in investor sentiment and strengthening fundamentals that suggest the stock is entering the next leg of a sustained rally.

While AMD has experienced sharp volatility—rallying from $135 to $211 in 2024 before dropping as low as $78 in 2025—Melius believes the current trajectory points to renewed upside. The firm sees accelerating momentum in AI inferencing as a key catalyst, particularly as hyperscalers and sovereign entities show increased interest in AMD’s platform as a viable alternative for high-performance computing.

Melius also anticipates rising estimates through 2028, underpinned by improving visibility into AMD’s GPU roadmap and broader platform adoption. The firm now projects AMD's earnings power could exceed $8 per share within two years, driven by the expanding AI opportunity.

Despite missing the early rebound, Melius believes there’s significant runway ahead and views the recent pullback as a buying opportunity for long-term investors.

Cantor Fitzgerald increased its price target on Advanced Micro Devices (NASDAQ:AMD) to $140 from $120, while maintaining an Overweight rating. The move comes in anticipation of AMD’s upcoming “Advancing AI 2025” event, which is expected to spotlight the company's data center and AI strategy.

The event, headlined by CEO Dr. Lisa Su, will focus on AMD’s AI hardware roadmap, particularly the Instinct MI350 accelerator, which is now scheduled for earlier production in mid-2025. Investors also await further details on next-generation chips like the MI400, updates to AMD’s ROCm software stack, and advancements in rack-scale infrastructure following the ZT Systems acquisition.

Another key topic will be AMD’s revised outlook for the total addressable market (TAM) for AI infrastructure, which could be extended through 2029 or 2030 with a potential upward revision toward $600 billion.

Cantor sees 2025 as a foundational year leading into what could be stronger momentum in 2026, especially if AMD can secure major design wins and deliver an integrated software-hardware solution that resonates with the market. The firm believes growing confidence in AMD’s AI offerings could drive the stock to outperform within the semiconductor sector over the coming year.

• Marjorie Taylor Greene purchased shares in Advanced Micro Devices Inc (NASDAQ:AMD), valued between $1,001 and $15,000.
• AMD's CEO, Lisa Su, remains optimistic about the company's growth despite regulatory challenges.
• AMD reported a significant double-digit percentage growth in revenue from AI chips, contributing to an earnings beat with a revenue of $7.4 billion for the latest quarter.

On May 5, 2025, Marjorie Taylor Greene made a purchase of shares in Advanced Micro Devices Inc (NASDAQ:AMD), valued between $1,001 and $15,000. AMD is a leading semiconductor company known for its high-performance computing, graphics, and visualization technologies. It competes with other tech giants like Intel and NVIDIA in the semiconductor industry.

AMD's CEO, Lisa Su, recently appeared on CNBC's 'Squawk on the Street' to discuss the company's latest earnings and the impact of chip export controls imposed by the Trump administration. Despite these regulatory challenges, Su remains optimistic about AMD's growth prospects. She acknowledged the export controls as a headwind but emphasized the significant opportunities for growth in the market.

Shares of AMD experienced a 1.8% increase in after-hours trading following the release of the company's first-quarter 2025 earnings report. A key highlight from the report was the significant double-digit percentage growth in revenue from AI chips, which contributed to the earnings beat. AMD reported a revenue of $7.4 billion for the latest quarter, surpassing analysts' expectations of $7.1 billion, as highlighted by Barron's.

However, AMD has expressed concerns over the potential financial impact of export controls to China, which could prove costly. The current stock price of AMD is $99.13, reflecting a change of $0.51, or 0.52%, from the previous trading session. Today, the stock has fluctuated between a low of $97.77 and a high of $103.42. Over the past year, AMD's stock has reached a high of $187.28 and a low of $76.48. The company has a market capitalization of approximately $160.3 billion, with a trading volume of 40.5 million shares today.

• Marjorie Taylor Greene purchased shares in Advanced Micro Devices Inc (NASDAQ:AMD), valued between $1,001 and $15,000.
• AMD's CEO, Lisa Su, remains optimistic about the company's growth despite regulatory challenges.
• AMD reported a significant double-digit percentage growth in revenue from AI chips, contributing to an earnings beat with a revenue of $7.4 billion for the latest quarter.

On May 5, 2025, Marjorie Taylor Greene made a purchase of shares in Advanced Micro Devices Inc (NASDAQ:AMD), valued between $1,001 and $15,000. AMD is a leading semiconductor company known for its high-performance computing, graphics, and visualization technologies. It competes with other tech giants like Intel and NVIDIA in the semiconductor industry.

AMD's CEO, Lisa Su, recently appeared on CNBC's 'Squawk on the Street' to discuss the company's latest earnings and the impact of chip export controls imposed by the Trump administration. Despite these regulatory challenges, Su remains optimistic about AMD's growth prospects. She acknowledged the export controls as a headwind but emphasized the significant opportunities for growth in the market.

Shares of AMD experienced a 1.8% increase in after-hours trading following the release of the company's first-quarter 2025 earnings report. A key highlight from the report was the significant double-digit percentage growth in revenue from AI chips, which contributed to the earnings beat. AMD reported a revenue of $7.4 billion for the latest quarter, surpassing analysts' expectations of $7.1 billion, as highlighted by Barron's.

However, AMD has expressed concerns over the potential financial impact of export controls to China, which could prove costly. The current stock price of AMD is $99.13, reflecting a change of $0.51, or 0.52%, from the previous trading session. Today, the stock has fluctuated between a low of $97.77 and a high of $103.42. Over the past year, AMD's stock has reached a high of $187.28 and a low of $76.48. The company has a market capitalization of approximately $160.3 billion, with a trading volume of 40.5 million shares today.