AMD stock price target raised to $190 from $140 by Piper Sandler

Investing.com - Piper Sandler raised its price target on AMD (NASDAQ:AMD) to $190.00 from $140.00 on Wednesday, while maintaining an Overweight rating on the semiconductor company’s stock. The company, currently trading near its 52-week high of $182.50, has delivered impressive returns with a 58% surge over the past six months according to InvestingPro data.

The price target increase follows AMD’s quarterly results, which showed a slight beat on the top line, with revenue reaching $29.6 billion in the last twelve months. The company also provided revenue guidance for the September quarter that exceeded market expectations, supported by a robust gross profit margin of 51%.

Piper Sandler highlighted the strong ramp-up of AMD’s MI350 GPU series as the key story behind its bullish outlook. The firm projects that the September quarter could be AMD’s largest ever for its GPU business, with estimates of almost $1.8 billion in GPU revenue.

The research note indicated that AMD’s other business segments, including client computing, servers, and gaming, are all performing well. Gaming is expected to see a seasonal sequential decline in the December quarter, while the embedded segment should continue to ramp slowly as industrial markets recover.

AMD’s MI series GPUs, particularly with the ramp of the MI350, are anticipated to drive strong performance in the second half of 2025 and fiscal year 2026, according to Piper Sandler’s analysis. InvestingPro subscribers can access 15+ additional exclusive insights and a comprehensive Pro Research Report, offering deep-dive analysis of AMD’s growth trajectory and market position.

In other recent news, Advanced Micro Devices (AMD) reported second-quarter revenue of $7.69 billion, surpassing expectations of $7.42 billion. The earnings per share for the quarter were $0.48, aligning with analyst forecasts. The company provided third-quarter guidance, projecting revenue of approximately $8.7 billion, slightly exceeding the consensus estimate of $8.3 billion. Analysts have responded to these developments with various ratings and price target adjustments. New Street Research raised its price target on AMD to $230, highlighting the momentum in the company’s Instinct AI accelerator business. Benchmark also increased its price target to $210, citing the company’s 32% year-over-year revenue growth. Cantor Fitzgerald maintained its price target at $200, noting AMD’s mixed earnings report. Additionally, Mizuho (NYSE:MFG) raised its price target to $183, driven by anticipated growth in AI and data center segments. KeyBanc reiterated its Sector Weight rating, emphasizing AMD’s strong second-quarter performance.

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