AMD stock price target raised to $200 from $120 at Raymond James

Investing.com - Raymond (NSE:RYMD) James has raised its price target on AMD (NASDAQ:AMD) to $200 from $120 while maintaining an Outperform rating following the company’s second-quarter 2025 results. The stock, currently trading at $174.31 with a market capitalization of $282.63 billion, has shown remarkable momentum with a 58% surge over the past six months. According to InvestingPro analysis, AMD is currently trading above its Fair Value, reflecting strong investor optimism about its future prospects.

The firm noted that AMD’s Q2 results and third-quarter revenue outlook exceeded consensus expectations, with upside driven primarily by the Client and Gaming segments, while the Data Center segment performed in line with expectations. InvestingPro data shows AMD maintains a strong financial health score of 2.79 (GOOD), with revenue growing at 21.71% over the last twelve months.

Raymond James highlighted that AMD’s MI355X product remains on track for strong growth in the second half of 2025, with deployments beginning at Oracle (NYSE:ORCL) (27K cluster) and sovereign engagements, while China licenses are still under review and could drive further upside to the firm’s model in coming quarters.

The company has made solid progress with Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), and xAI, with an additional customer announcement (likely AWS) expected in coming quarters, according to Raymond James, which also expects AI momentum to accelerate further with the upcoming launch of AMD’s rackscale product in 2026.

Despite growing competition from ARM in the server CPU market, Raymond James believes a 10-20% AI GPU market share is reasonable for AMD in the longer term, which should drive double-digit growth for the next 2-3 years.

In other recent news, Advanced Micro Devices Inc. (AMD) announced its second-quarter earnings for 2025, showing a substantial 32% year-over-year increase in revenue, reaching $7.7 billion. This growth was primarily fueled by strong sales of its EPYC and Ryzen processors. The company met earnings per share expectations, reporting $0.48 per share. Despite these positive results, AMD’s stock experienced a 1.4% dip in the aftermarket session. The market reaction may be attributed to mixed financial metrics and broader trends within the tech sector. Analysts have not yet provided any upgrades or downgrades following these earnings results. As these developments unfold, investors remain attentive to AMD’s performance and market conditions.

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