AMD stock price target raised to $210 from $170 at Benchmark

Investing.com - Benchmark raised its price target on AMD (NASDAQ:AMD) to $210.00 from $170.00 on Wednesday, while maintaining a Buy rating on the semiconductor company’s shares. With a market capitalization of $259.28 billion, AMD’s analyst price targets now range from $120 to $223, reflecting mixed views on the stock’s current valuation. According to InvestingPro data, AMD is currently trading at a P/E ratio of 116.56, suggesting premium pricing relative to peers.

The chipmaker reported second-quarter revenue of $7.685 billion, representing a 32% year-over-year increase and 3% sequential growth. This result exceeded Street expectations of $7.415 billion by $270 million, despite an estimated $700 million in lost revenue from China due to export restrictions. The company maintains robust financial health with a strong current ratio of 2.49 and an impressive gross profit margin of 50.99%.

AMD provided third-quarter guidance of $8.7 billion, projecting 13% sequential growth and 28% year-over-year improvement. This outlook surpassed consensus estimates of $8.323 billion by $377 million, even while accounting for approximately $800 million in lost China revenue due to heightened export restrictions on AI accelerators. InvestingPro analysis reveals AMD’s strong momentum, with revenue growing at 27.17% over the last twelve months. For deeper insights into AMD’s growth trajectory and 18 additional exclusive ProTips, consider exploring InvestingPro’s comprehensive research platform.

The company’s second-quarter performance was driven by record sales of EPYC server CPUs and Ryzen client CPUs in both AI and traditional enterprise markets. AMD also saw strong demand for supply-constrained Radeon Desktop GPUs and higher semi-custom game console shipments as console makers restocked for the holiday season.

For the third quarter, AMD expects growth to be fueled by a strong double-digit increase in its Data Center segment as MI350 ramps up, continued strength in EPYC CPUs, mid-single digit sequential gains in Client, and a return to growth in Embedded, while Gaming is projected to remain flat quarter-over-quarter.

In other recent news, Advanced Micro Devices (AMD) reported second-quarter revenue of $7.69 billion, surpassing consensus estimates of $7.42 billion, with earnings per share at $0.48, matching expectations. The company has provided guidance for third-quarter revenue of approximately $8.7 billion, slightly above consensus expectations. Several analyst firms have reacted to these developments by adjusting their price targets for AMD. Cantor Fitzgerald maintained its price target at $200, citing a mixed earnings report. Mizuho (NYSE:MFG) raised its price target from $175 to $183, highlighting growth in artificial intelligence sectors. JPMorgan increased its target from $120 to $180, noting improved client and gaming revenues. Stifel adjusted its target from $161 to $190, pointing to strong revenue performance and AI potential. UBS reiterated its Buy rating with a $210 price target, emphasizing a revenue beat driven by the gaming segment.

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