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Investing.com - Bernstein SocGen Group raised its price target on Advanced Micro Devices (NASDAQ:AMD) to $140.00 from $95.00 on Monday, while maintaining a Market Perform rating on the semiconductor company. According to InvestingPro data, AMD currently trades at a P/E ratio of 114.7x and has seen a robust 28% price return over the past six months, though technical indicators suggest the stock may be overbought.
The firm adjusted its estimates to incorporate the resumption of China AI business and prospects for better future performance. Bernstein now forecasts Q2 2025 revenue of $7.52 billion with earnings per share of $0.49, slightly above its previous estimate but below the consensus of $7.41 billion and $0.50. The company has demonstrated strong momentum, with revenue growing 21.7% in the last twelve months to $27.75 billion. Investors can access detailed financial analysis and 19 additional key insights through InvestingPro’s comprehensive research reports.
For Q3 2025, Bernstein projects $8.43 billion in revenue and $1.20 in earnings per share, exceeding both its prior forecast and consensus estimates, primarily due to the return of China AI business. The firm’s full-year 2025 projection now stands at $32.0 billion in revenue and $3.89 in earnings per share.
Bernstein attributed AMD’s recent stock performance to several factors, including the China AI business resumption, the upcoming MI350 product launch, continued market share gains, gaming recovery, and stabilization in the embedded segment.
Despite the positive adjustments, Bernstein remains cautious, citing elevated valuations and expectations amid risks of client channel flush and potential tariff pull-forward reversal, which explains its maintained Market Perform rating despite the significant price target increase. This caution aligns with InvestingPro’s analysis, which indicates AMD is trading above its Fair Value, with multiple valuation metrics at elevated levels. The company’s next earnings report is scheduled for August 5, 2025, which could provide crucial insights into its growth trajectory.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several analyst updates and policy changes that could impact its future performance. HSBC upgraded AMD to a Buy rating, setting a price target of $200, citing potential upside in AI revenue, which they estimate could reach $15.1 billion by fiscal year 2026. Mizuho (NYSE:MFG) also raised its price target for AMD to $175, highlighting the opportunity for AMD to resume shipments of its MI308 chips to China, following a U.S. policy change. This decision allows AMD to re-enter a significant market, estimated at $50 billion. BofA Securities increased its price target to $175, pointing to stronger-than-expected data center GPU prospects, which could add $1 billion to AMD’s 2025 forecasts. Citi raised its price target to $165, maintaining a Neutral rating, based on improving sentiment around AMD’s AI capabilities. These developments come as AMD plans to restart shipments of its MI308 chips to China after receiving U.S. government approval, a move that could recover approximately $800 million in previously lost revenue.
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