AMD stock price target raised to $280 from $240 at Piper Sandler

Investing.com - Piper Sandler raised its price target on AMD (NASDAQ:AMD) to $280 from $240 while maintaining an Overweight rating following the company’s quarterly results. AMD, currently trading at $250.05 and with a substantial market cap of $405.79 billion, has delivered impressive returns with its stock up 76.51% over the past year. InvestingPro analysis indicates the stock is trading above its Fair Value.

The research firm noted that AMD delivered a solid quarter, exceeding expectations across all metrics, particularly in the data center segment. The data center business grew 22% year-over-year, with both MI (GPU) and EPYC server products showing sequential and annual growth. This performance aligns with AMD’s overall revenue growth of 27.17% over the last twelve months, reaching $29.6 billion.

For the December quarter, AMD provided guidance approximately $400 million above consensus on revenue. Piper Sandler highlighted that both EPYC processors and Instinct series GPUs are expected to demonstrate sequential strength.

The firm observed that while AMD’s GPU server business is currently smaller than its EPYC server business, a crossover is anticipated in late 2026, coinciding with the OpenAI deal in the fourth quarter of that year. Management indicated that EPYC servers are expected to perform exceptionally well as inference workloads drive strong growth.

Piper Sandler’s price target increase reflects AMD’s GPU growth prospects and potential future revenues from the OpenAI partnership.

In other recent news, Advanced Micro Devices (AMD) reported its third-quarter 2025 earnings, surpassing Wall Street expectations with record revenue of $9.2 billion and an earnings per share of $1.20. Despite the strong financial performance, the company’s stock experienced a decline in after-hours trading. Roth/MKM raised its price target for AMD to $300 from $250, maintaining a Buy rating, citing robust revenue growth and optimistic fourth-quarter guidance. Similarly, Jefferies reiterated its Buy rating with a $300 price target, highlighting significant growth in AMD’s server CPU segment driven by increased demand for artificial intelligence. Baird also raised its price target to $300 from $240, maintaining an Outperform rating and pointing to potential catalysts such as AMD’s upcoming financial analyst day. Stifel increased its price target to $280 from $240, emphasizing strong third-quarter results and a positive fourth-quarter outlook, with demand for server CPUs as a key driver. These developments indicate a positive sentiment among analysts regarding AMD’s future prospects, despite the recent stock price movement.

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