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On Wednesday, TD Cowen reaffirmed its confidence in Advanced Micro Devices, Inc. (NASDAQ:AMD), as analyst Joshua Buchalter increased the firm’s price target on AMD shares to $115 from the previous $110, while maintaining a Buy rating. According to InvestingPro data, AMD currently trades at $98.92, with analyst targets ranging from $75 to $200, reflecting the stock’s significant volatility and growth potential. Buchalter highlighted the company’s strong performance, noting that gains in PC and server CPU market share are proving to be sustainable and are contributing to AMD’s financial success.
Despite a robust overall performance, Buchalter pointed out that the first half of 2025 has been challenging for AMD’s Data Center GPU (DCGPU) segment due to underwhelming results and write-downs. InvestingPro analysis shows AMD maintains strong financial health with a current ratio of 2.62 and minimal debt, positioning it well to weather near-term challenges. The company’s overall Financial Health Score is rated as "GOOD" by InvestingPro analysts. However, he emphasized that the anticipated sales inflection of the MI355 in the second half of 2025 will be crucial for the stock’s trajectory. The upcoming AI event on June 12, 2025, is expected to provide further insights into the company’s direction and future plans.
Buchalter’s analysis also included adjustments to AMD’s financial forecasts. He mentioned a slight reduction in the company’s top-line revenue projections for 2025 and 2026. Additionally, earnings are expected to be impacted more significantly due to modestly lower margins and increased operational expenses.
The new price target of $115 is based on approximately 20 times the firm’s revised earnings per share estimate for 2026. Despite the adjustments, the Buy rating remains unchanged, signaling TD Cowen’s continued positive outlook on AMD’s stock. Buchalter’s commentary suggests that while there are areas of concern, particularly with the DCGPU segment, the overall growth trajectory and market share gains in key areas remain promising for AMD. InvestingPro data supports this outlook, projecting 22% revenue growth for FY2025, with additional exclusive insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of AMD’s financial health, valuation, and growth prospects.
In other recent news, Advanced Micro Devices (AMD) reported financial results for the March quarter, achieving revenues of $7.44 billion and earnings per share (EPS) of $0.96, which exceeded consensus estimates. The company provided guidance for the June quarter with anticipated revenues of $7.4 billion and EPS of $0.90, surpassing expectations. Analysts have varied opinions on AMD’s outlook; Cantor Fitzgerald maintained an Overweight rating with a $120 price target, citing confidence in AMD’s growth trajectory despite challenges from a GPU embargo in China. Meanwhile, Truist Securities revised its price target to $111, expressing concerns about AMD’s competitive positioning as it exits the China market.
Northland adjusted its price target to $132, noting AMD’s strong performance in the Data Center segment, which saw revenues of $3.7 billion. Stifel reaffirmed a Buy rating with a $132 target, highlighting AMD’s acquisition of ZT Systems and its potential to enhance capabilities. Evercore ISI maintained an Outperform rating with a $126 target, emphasizing the projected growth in AMD’s Instinct GPU business. These developments reflect a mix of optimism and caution among analysts, as AMD navigates market challenges and opportunities.
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