AMD stock price target raised to $205 from $183 at Mizuho on AI chip growth

Investing.com - Mizuho raised its price target on {{8274|AMD (NASDAQ:AMD)}} to $205 from $183 on Friday, while maintaining an Outperform rating on the semiconductor company’s stock. AMD, currently trading at $178.89 and approaching its 52-week high of $186.65, has demonstrated remarkable momentum with a 60% surge over the past six months.

The investment firm increased its revenue and earnings per share estimates for AMD’s September quarter from $8.71 billion and $1.14 to $8.80 billion and $1.15, respectively. Consensus estimates stand at $8.71 billion in revenue and $1.17 in earnings per share. With a market capitalization of $293.65 billion and a P/E ratio of 107x, AMD trades at premium valuations, reflecting strong growth expectations.

Mizuho also raised its fiscal 2025 estimates from $33.2 billion in revenue and $4.00 in earnings per share to $33.4 billion and $4.02, above the consensus of $33.1 billion and $3.96. The firm similarly increased its projections for fiscal 2026 and 2027.

The price target increase reflects a higher valuation multiple of 33.7x, up from the previous 30.5x, as Mizuho sees AMD benefiting from MI308 chip deployments in China.

Mizuho noted that AMD’s MI355 chip provides opportunity for additional upside, with Microsoft expected to see strong fiscal 2026 capital expenditure.

In other recent news, Advanced Micro Devices (AMD) has received U.S. government approval to export certain artificial intelligence processors to China. This development marks a significant step in the regulation of advanced technology exports to the region. Additionally, Mizuho has adjusted its revenue estimate for AMD’s September quarter to $8.80 billion, up from $8.71 billion, and its earnings per share to $1.15, slightly below the consensus estimate of $1.17. The firm attributes this adjustment to growing demand in AI and increased capital expenditure from hyperscalers, alongside potential benefits from China.

In a separate analysis, TD Cowen has raised its price target for AMD to $195 from $165, citing a strong performance in the company’s Gaming segment as a key driver. The firm maintained a Buy rating, highlighting the company’s solid quarterly results. Meanwhile, AMD and ARM-based processors continue to gain market share against Intel, with AMD’s shipments rising 1% quarter-over-quarter. Lastly, U.S. Treasury Secretary Scott Bessent suggested that a revenue-sharing deal with China on semiconductor sales could potentially expand to other sectors, indicating broader implications for international trade agreements.

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