AMD stock price target raised to $230 from $150 at New Street Research

Investing.com - New Street Research raised its price target on AMD (NASDAQ:AMD) to $230 from $150 while maintaining a Buy rating, citing momentum in the company’s Instinct AI accelerator business. The semiconductor giant, currently valued at $261.39 billion, has seen its stock surge 44.31% year-to-date, reflecting strong investor confidence. According to InvestingPro data, analyst price targets currently range from $120 to $223.

The research firm noted that seven of the top 10 AI firms have adopted AMD’s Instinct chips, with lead times now extending into the second quarter of 2026. New Street projects that AMD’s GPU market share could exceed 10% by 2029, potentially generating $34 billion in Instinct revenues. The company’s strong market position is supported by impressive revenue growth of 27.17% and a healthy gross profit margin of 50.99%.

AMD is also gaining ground in its core CPU business, with PC market share increasing by 1 percentage point to 27%, showing particular strength in high-end and commercial segments. Server CPU share rose by 2 percentage points to 40%, with growth in both cloud and on-premises deployments.

New Street expects continued growth driven by reinforcement learning and agentic AI, alongside recovery in AMD’s gaming and embedded segments. The firm projects that reaching 10% GPU share by 2029 could enable AMD to grow revenues and earnings per share by 20% and 40% annually over four years, respectively, reaching $15 in EPS.

The research firm identified potential catalysts in the first half of 2026 as deployment scale accelerates with the introduction of AMD’s MI400 chips, while noting that China will remain "a source of concern and volatility" for the company.

In other recent news, AMD reported a second-quarter revenue of $7.69 billion, surpassing consensus estimates of $7.42 billion. The company also matched earnings per share expectations at $0.48. Looking ahead, AMD has provided guidance for third-quarter revenue of approximately $8.7 billion, slightly above the consensus expectations of $8.3 billion, with projected earnings of $1.16 per share. Analysts have responded positively to these developments, with Benchmark raising its price target for AMD to $210 from $170, maintaining a Buy rating. Cantor Fitzgerald reiterated its Overweight rating with a $200 price target, while Mizuho (NYSE:MFG) increased its target to $183, citing strong PC/Client growth and data center ramp-up. JPMorgan adjusted its price target to $180 from $120, noting improved client and gaming revenues. Stifel raised its price target to $190, highlighting AMD’s strong revenue performance and AI potential. These recent developments reflect the company’s robust financial performance and positive outlook among analysts.

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