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

Investing.com - Mizuho has raised its price target on AMD (NASDAQ:AMD) to $205 from $183 while maintaining an Outperform rating, citing continued growth in hyperscaler capital expenditure and additional tailwinds from China. The stock, currently trading at $184.42 and commanding a market cap of $299.82 billion, has shown remarkable momentum with a 56% surge over the past six months. According to InvestingPro data, 23 analysts have recently revised their earnings estimates upward for the upcoming period.

The investment firm adjusted its September quarter revenue estimate to $8.80 billion from $8.71 billion and earnings per share to $1.15 from $1.14, compared to consensus estimates of $8.71 billion and $1.17, respectively.

Mizuho also increased its fiscal 2025 estimates to $33.4 billion in revenue and $4.02 in earnings per share, up from previous projections of $33.2 billion and $4.00, while raising fiscal 2026 and 2027 forecasts as well.

The firm specifically revised its Instinct GPU revenue projections upward across fiscal years 2025 through 2027, reflecting stronger anticipated demand for AMD’s AI accelerators.

Mizuho’s analysis indicates AMD will benefit from the ramp of MI308 chips in China, while the MI355 product provides opportunity for additional upside, with Microsoft expected to increase capital expenditure significantly in fiscal 2026.

In other recent news, Advanced Micro Devices (AMD) reported second-quarter revenue that surpassed expectations, while earnings per share aligned with forecasts despite increased operating expenses. The company’s strong performance was driven by its server and gaming segments. Additionally, AMD has received U.S. government approval to export certain artificial intelligence processors to China, marking a significant regulatory development in technology exports. Analyst firms have responded positively to AMD’s recent performance, with TD Cowen raising its price target for the company to $195 from $165, citing a strong quarter driven by the gaming segment. Similarly, Piper Sandler increased its price target to $190 from $140, noting a slight beat on the top line and optimistic revenue guidance for the upcoming quarter. Meanwhile, KeyBanc maintained its Sector Weight rating, acknowledging AMD’s robust second-quarter results and promising third-quarter outlook. In other developments, U.S. Treasury Secretary Scott Bessent hinted at the possibility of expanding a revenue-sharing agreement with China to other sectors, currently involving a 15% revenue share from certain semiconductor chip sales.

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