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Investing.com - BofA Securities raised its price target on AMD (NASDAQ:AMD) to $175 from $130 while maintaining a Buy rating, citing stronger-than-expected data center GPU prospects. The semiconductor giant, currently valued at $252.89 billion, has seen its stock surge over 6% in the past week, reflecting strong market confidence. According to InvestingPro data, the broader analyst consensus remains firmly bullish with a 1.75 rating.
The firm projects AMD can ship $400-$600 million quarterly in data center GPUs during the second half of 2025 and throughout 2026, adding approximately $1 billion to AMD’s 2025 data center GPU forecast and $2 billion to consensus expectations for 2026.
BofA highlighted AMD’s strong pricing for its western MI355X GPU at $20,000-$25,000 versus the $17,000 consensus assumption, which contributes to the improved outlook.
The analyst also noted several additional growth drivers, including continued server CPU share gains against Intel (NASDAQ:INTC), conservative PC CPU assumptions for the second half of 2025, potential embedded systems recovery, and follow-on rack-scale MI400 products in 2026.
The new $175 price target represents a 31x price-to-earnings multiple on 2026 estimated earnings, within AMD’s historical range of 13x-39x and close to its five-year median of 32x. Currently trading at a P/E ratio of 114x, AMD shows characteristics of a growth stock with higher volatility (Beta: 2.05). For detailed valuation metrics and 17 additional key insights, visit InvestingPro.
In other recent news, Advanced Micro Devices (AMD) plans to resume shipments of its MI308 chips to China after receiving approval from the US government. This development follows a similar decision for Nvidia (NASDAQ:NVDA), and AMD had previously estimated that export restrictions on these chips could result in about $800 million in lost revenue. HSBC has upgraded AMD stock to a Buy, setting a price target of $200, citing potential upside in AI revenue. The firm forecasts AMD’s fiscal year 2026 AI revenue at $15.1 billion, significantly above the consensus estimate. In contrast, Goldman Sachs initiated coverage on AMD with a Neutral rating and a price target of $140, noting potential challenges in market share gains against Nvidia. AMD is set to release its fiscal second quarter 2025 financial results on August 5, 2025, with a conference call scheduled to discuss the results. Additionally, AMD’s CFO, Jean Hu, will present at Citi’s 2025 Global TMT Conference on September 3, 2025.
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