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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Advanced Micro Devices (NASDAQ:AMD) to $175 from $152 while maintaining an Outperform rating on the stock. AMD, currently trading at $155.61 with a market capitalization of $253 billion, has shown strong momentum with a 6.11% gain in the past week. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The price target increase follows the Trump administration’s announcement that NVIDIA and other AI accelerator providers would be allowed to resume AI GPU shipments to China as part of trade negotiations.
Mizuho highlighted that AMD will be able to resume shipments of its MI308 chips to China, representing a significant opportunity as U.S. companies re-enter what the firm estimates is a $50 billion market.
The firm noted this policy change represents a "BIG win" for NVIDIA, which had previously expected an $8 billion revenue impact in the July quarter from shipment restrictions to China.
Mizuho also raised price targets for NVIDIA and Broadcom (NASDAQ:AVGO) alongside AMD, with Chinese customers already applying for licenses to receive shipments of certain AI chips.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several significant developments. AMD plans to restart shipments of its MI308 chips to China after receiving approval from the US government, reversing previous export restrictions that had threatened to result in $800 million in lost revenue. This decision follows a similar approval for Nvidia (NASDAQ:NVDA), indicating a shift in US policy. On the financial front, BofA Securities raised its price target for AMD to $175, citing stronger-than-expected data center GPU prospects, while HSBC upgraded AMD from Hold to Buy, setting a price target of $200 due to an optimistic outlook on AI revenue. Goldman Sachs initiated coverage on AMD with a Neutral rating and a price target of $140, noting AMD’s strong execution in the server and PC CPU markets but cautioning about potential earnings growth challenges due to competition. These analyst updates reflect varying perspectives on AMD’s market position and future growth potential. Additionally, AMD’s strategic moves in AI technology continue to draw investor attention, as the company is expected to remain in investment mode to capitalize on AI accelerator opportunities.
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