Trump announces trade deal with EU following months of negotiations
Piper Sandler raised its price target on Advanced Micro Devices (NASDAQ:AMD) stock to $140 from $125 on Monday, while maintaining an Overweight rating on the semiconductor company. The chipmaker, currently trading at $121.55, has demonstrated strong momentum with a market capitalization of nearly $197 billion. According to InvestingPro data, AMD maintains robust financial health with a current ratio of 2.8, indicating strong liquidity.
The research firm cited enthusiasm about AMD’s recent product launches, specifically highlighting the Helios rack, which it considers "pivotal for AMD Instinct growth" in the graphics processing unit (GPU) segment.
Piper Sandler expects AMD’s GPU business to experience a "snapback" in the fourth quarter of 2025 after working through most China-related charges. The firm made these observations following AMD’s quarterly pre-quarter close call with the financial community on Friday.
The analyst note also mentioned that AMD’s largest business unit, the client segment, is "starting to see some pull-ins," suggesting improving demand in that division.
AMD shares have been volatile in recent months amid intense competition in the artificial intelligence chip market, where the company has been working to gain market share against established competitors. With a beta of 1.99, the stock’s volatility reflects its aggressive growth positioning in the competitive semiconductor industry.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several analyst reviews following its AI event. Benchmark reiterated its Buy rating with a $170 price target, citing the launch of AMD’s Instinct MI350 Series as a significant development. The chips are now in production, with volume revenue expected to ramp up in the third quarter. UBS also maintained a Buy rating, noting that Amazon (NASDAQ:AMZN) has emerged as a new customer, which aligns with AMD’s growth in the inference market. TD Cowen echoed a similar sentiment, maintaining a Buy rating and highlighting AMD’s progress in AI, especially with its new MI350 series chips and upcoming MI400 "Helios."
On the other hand, Bernstein maintained a Market Perform rating, pointing out that while AMD’s AI event provided roadmap updates, it lacked major new customer announcements. Despite this, the firm recognized AMD’s projection of a growing AI accelerator market. Stifel also upheld a Buy rating, emphasizing AMD’s focus on inference workloads and its plans to match NVIDIA (NASDAQ:NVDA)’s GPU release cycle by 2027. The analysts collectively noted AMD’s strategic shift and commitment to the AI ecosystem, with several firms expressing optimism about the company’s future in the AI market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.