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Investing.com - Mizuho (NYSE:MFG) has raised its price target on AMD (NASDAQ:AMD) to $183.00 from $175.00 while maintaining an Outperform rating following the company’s June quarter earnings report. The semiconductor giant, currently valued at $282.63 billion, is trading near its 52-week high of $182.50, according to InvestingPro data.
AMD reported results in line with expectations and guided September quarter revenue to $8.7 billion, slightly above consensus estimates of $8.4 billion, driven by strong PC/Client growth and data center Instinct MI350 ramp-up in the second half of 2025. The company maintains a strong financial position with a "GOOD" health score from InvestingPro, which highlights 20 additional key insights about AMD’s performance.
The chipmaker’s MI350X processors began ramping up production in June, supporting Mizuho’s AI/GPU revenue forecast of $6.4 billion, representing 28% year-over-year growth and driving expected September quarter data center revenue up 26% quarter-over-quarter.
Mizuho noted a potential upside from AMD’s $800 million MI308 restricted China write-down, which could be recovered if the license review proves favorable, while the Client segment grew 6% and Gaming remained flat quarter-over-quarter.
Despite AMD shares falling approximately 5% in after-hours trading, Mizuho highlighted that the stock has gained about 100% over the past three months, and maintained its Outperform rating as AMD stands to benefit from AI growth with MI400 processors expected in 2026. With a projected revenue growth of 24% for FY2025 and trading at a P/E ratio of 127, investors seeking deeper insights into AMD’s AI potential can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Advanced Micro Devices (AMD) reported second-quarter revenue of $7.7 billion, marking a 32% increase year-over-year, which exceeded consensus estimates. This robust performance was driven by strong sales of EPYC and Ryzen CPUs, despite some challenges with Instinct GPU sales due to U.S. export controls on shipments to China. JPMorgan noted that AMD’s June quarter revenue results exceeded guidance by 4%, with margins and earnings per share meeting expectations, supported by improved client and gaming revenues.
Barclays (LON:BARC) raised its price target for AMD to $200 from $130, highlighting the company’s strong artificial intelligence trends in its data center business and market share growth in its client segment. Stifel also increased its price target to $190 from $161, citing the company’s AI compute potential and strong revenue performance. UBS reiterated its Buy rating with a $210 price target, noting that AMD’s revenue beat was primarily driven by the gaming segment, with a positive outlook for the data center GPU business in the latter half of the year. Meanwhile, Goldman Sachs maintained a Neutral rating with a $150 price target, acknowledging AMD’s strong quarterly results but expressing caution due to high investor expectations and recent stock performance.
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