AMD stock price target raised to $260 from $246 at Morgan Stanley

Investing.com - Morgan Stanley has raised its price target on AMD (NASDAQ:AMD) to $260 from $246 while maintaining an Equalweight rating on the stock. The new target sits close to AMD’s current price of $250.05 and near its 52-week high of $267.08, with the stock having delivered an impressive 76.5% return over the past year.

The adjustment comes as AMD prepares for its upcoming analyst day next week, which is expected to provide clarity on the company’s MI450 opportunity, according to Morgan Stanley. This comes amid strong momentum for the semiconductor giant, which has posted 27.17% revenue growth in the last twelve months.

The firm highlighted recent developments including the Oracle announcement as a tangible proof point, noting that cloud service providers will be the primary spenders even with the Open AI deal in place.

Morgan Stanley expects AMD to increase its target addressable market from the current $500 billion by 2028, with likely discussion of data center targets over that timeframe during the analyst day.

The new price target is based on 30 times calendar year 2027 earnings per share of $8.68, representing a multiple at "the high end of the semis group, but below AI stalwarts NVDA and AVGO on a MW basis," according to the firm.

In other recent news, AMD’s third-quarter 2025 results have led to several analysts raising their price targets for the company. Evercore ISI increased its target to $270, noting that AMD’s revenue beat consensus estimates by 5.6%, with earnings per share coming in 2% above expectations. UBS also raised its target to $300, maintaining a Buy rating and advising caution against selling before the upcoming analyst day. Loop Capital adjusted its target to $290, reflecting higher fiscal 2027 estimates due to significant revenue from MI400 Helios wins. Piper Sandler set a new target of $280, highlighting AMD’s solid quarterly performance, especially in the data center segment, which grew 22% year-over-year. Lastly, Roth/MKM raised its target to $300, citing strong third-quarter revenue growth and optimistic fourth-quarter guidance. These developments indicate a positive outlook from analysts following AMD’s recent earnings and strategic wins.

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