AMD price target raised to $144 from $126 at Evercore ISI

Evercore ISI raised its price target on AMD (NASDAQ:AMD) stock to $144.00 from $126.00 on Friday, while maintaining an Outperform rating on the semiconductor company. The stock, currently trading at a P/E ratio of 86.9x and commanding a market cap of $192.1 billion, shows strong momentum with a 21.7% revenue growth in the last twelve months. According to InvestingPro analysis, AMD appears slightly undervalued based on its Fair Value model.

The price target increase follows AMD’s Advancing AI event, which Evercore ISI described as consistent with its latest AI channel checks. These checks indicated AMD is making progress on its ROCm software stack and gaining traction with hyperscalers’ internal inferencing workloads.

Evercore ISI noted that hyperscalers are working to diversify their AI chip supplier base, creating an opportunity for AMD to increase its market presence. The firm maintained its existing earnings estimates for the company despite the price target increase.

The new $144 price target is based on a 21x multiple of AMD’s calendar 2027 estimated earnings per share of $7.54, discounted back at 10%. Evercore ISI’s previous target was $126.

The research firm justified the higher price-to-earnings multiple by citing "increased visibility on datacenter GPUs" for AMD, suggesting greater confidence in the company’s artificial intelligence strategy and execution.

In other recent news, AMD unveiled its new Instinct MI350 Series accelerators, boasting a significant 4x increase in AI compute capabilities over the previous generation. The company also introduced its next-generation "Helios" AI rack design and announced that its open-standards rack-scale AI infrastructure is already being deployed by Oracle (NYSE:ORCL) Cloud Infrastructure. Additionally, AMD showcased its MI350 and MI400 series AI chips during the "Advancing AI" event, positioning them as competitors to Nvidia (NASDAQ:NVDA)’s processors. CEO Lisa Su confirmed AMD’s product roadmap aligns with Nvidia’s annual release schedule, aiming to capture a larger share of the AI chip market.

Cantor Fitzgerald raised AMD’s price target to $140, maintaining an Overweight rating due to the company’s promising AI prospects. In contrast, KeyBanc analysts maintained a Sector Weight rating on AMD stock after lowering their earnings estimates due to anticipated charges. They revised the company’s EPS estimate for the second quarter of 2025 to $0.47, accounting for approximately $800 million in charges linked to the write-off of MI308. In a strategic move, AMD expanded its collaboration with Infobell to develop enterprise AI solutions powered by AMD Instinct GPUs and EPYC CPUs. This partnership aims to accelerate AI adoption by leveraging AMD’s CDNA architecture and ROCm software stack.

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