AMD stock price target maintained at $200 by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $200.00 price target on Advanced Micro Devices (NASDAQ:AMD) following the company’s mixed second-quarter earnings report. According to InvestingPro data, AMD is currently trading near its 52-week high of $182.50, with a P/E ratio of 127.12, suggesting premium valuation levels.

AMD reported second-quarter revenue of $7.69 billion and earnings per share of $0.48, compared to consensus estimates of $7.42 billion and $0.48. With a strong financial health score rated as "GOOD" by InvestingPro, including a comfortable current ratio of 2.8 and low debt levels, the company provided guidance for third-quarter revenue of approximately $8.7 billion, implying earnings of $1.16 per share, slightly above consensus expectations of $8.3 billion and $1.15.

Gaming was identified as the primary driver of the second-quarter revenue beat, while Data Center growth decelerated to 14% year-over-year, down from 57% year-over-year growth in the first quarter. This deceleration, combined with only a modest earnings beat, contributed to a sell-off in AMD shares after hours.

Cantor Fitzgerald highlighted that AMD expects its Instinct processors to drive approximately 75% of the projected $1 billion quarter-over-quarter revenue growth, indicating the early stages of the MI355 product ramp that is expected to continue into the fourth quarter and beyond.

The firm noted that AMD’s guidance does not include any revenue from AMD Instinct MI308 sales to China, where license approvals are expected in the near term, potentially providing upside in the second half of 2025.

In other recent news, AMD reported second-quarter revenue of $7.7 billion, marking a 32% increase year-over-year and exceeding consensus estimates. The company’s June quarter earnings showed revenue results surpassing guidance by 4%, driven by strong performance in client and gaming revenues. Additionally, AMD guided September quarter revenue to $8.7 billion, slightly above the consensus estimates of $8.4 billion. UBS reiterated its Buy rating with a $210 price target, noting that the revenue beat was primarily due to the gaming segment, with expectations of a strong inflection in the data center GPU business later in the year.

Several firms have adjusted their price targets for AMD following the earnings report. Mizuho (NYSE:MFG) raised its price target to $183, maintaining an Outperform rating, while JPMorgan increased its target to $180, keeping a Neutral rating. Stifel boosted its price target to $190, citing strong revenue performance and AI compute potential, and Barclays (LON:BARC) raised its target to $200, emphasizing AMD’s strength in artificial intelligence trends and market share expansion. These developments reflect a positive outlook from analysts, driven by AMD’s growth in AI and data center segments.

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