Can anything shut down the Gold rally?
Investing.com - JPMorgan has raised its price target on AMD (NASDAQ:AMD) to $180.00 from $120.00 while maintaining a Neutral rating on the stock. The chipmaker, now valued at $282.63 billion, trades at a P/E ratio of 127.12, suggesting premium pricing according to InvestingPro data.
The chipmaker reported June quarter revenue results that exceeded guidance by 4%, with margins and earnings per share in line with expectations. The stronger performance was driven by better client and gaming revenues, along with slightly improved datacenter revenues. AMD’s stock has shown remarkable momentum, gaining over 58% in the past six months and trading near its 52-week high of $182.50. Get deeper insights into AMD’s performance metrics with InvestingPro, which offers 20 additional key insights about the company.
JPMorgan estimates AMD shipped $1.1 billion in datacenter GPUs in the June quarter and believes the company is on track to ship around $7 billion in MI3xx GPUs this year, excluding potential China shipments. This represents an increase from JPMorgan’s previous estimate of $6.5 billion.
For the September quarter, AMD guided revenue to $8.7 billion, up 13% quarter-over-quarter, surpassing consensus expectations of $8.37 billion. This guidance implies strong double-digit percentage growth in datacenter revenue, slight growth in PC/Client, flat gaming revenue, and improved embedded segment performance.
JPMorgan now believes AMD is positioned to exit this year with 43-45% market share in server CPU, up from its previous expectation of 39-40%, citing strong traction for the company’s next-generation server CPU portfolio among both cloud/hyperscalers and enterprise customers. With revenue growing at 21.71% and maintaining a GOOD Financial Health Score of 2.79, AMD continues to demonstrate solid operational execution.
In other recent news, Advanced Micro Devices (AMD) reported second-quarter revenue of $7.7 billion, marking a 32% increase year-over-year and surpassing consensus estimates. This growth was primarily driven by strong sales in its EPYC and Ryzen CPU lines. Following the earnings announcement, several firms updated their outlook on AMD. Stifel raised its price target to $190, citing strong revenue performance and AI potential, while UBS reiterated a Buy rating with a $210 price target, noting the revenue beat and positive guidance. Barclays (LON:BARC) also increased its price target to $200, highlighting AMD’s strength in artificial intelligence and market share expansion. Meanwhile, Goldman Sachs maintained a Neutral rating with a $150 price target, suggesting the stock may remain stable despite strong quarterly results. Deutsche Bank (ETR:DBKGn) raised its price target to $150, acknowledging the solid revenue beat and optimistic third-quarter guidance of $8.7 billion. These developments underscore the varied perspectives on AMD’s future performance among analysts.
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