AMD stock price target raised to $280 from $240 at Stifel on strong results

Investing.com - Stifel has raised its price target on AMD (NASDAQ:AMD) to $280 from $240 while maintaining a Buy rating on the stock following the company’s third-quarter results. AMD currently trades at $250.05, with a substantial P/E ratio of 151.2, reflecting the high growth expectations for the semiconductor giant with a market capitalization of $405.79 billion. According to InvestingPro data, the stock is currently trading near its 52-week high of $267.08.

AMD delivered strong, above-consensus third-quarter results and fourth-quarter outlook, according to Stifel analyst Ruben Roy. The firm believes near-term outperformance is being driven more by increasing demand for server CPUs and continued market share gains in client CPUs than by data center AI GPUs. This aligns with the company’s impressive 27.17% revenue growth over the last twelve months, though InvestingPro analysis indicates the stock may be overvalued at current levels.

Stifel estimates that AMD’s data center AI GPU business is on track to increase to $6 billion-$6.5 billion this year from an estimated $5 billion in 2024. The firm noted that AMD is executing well as the company approaches production shipments of the MI400/450 series GPUs and the Helios rack next year. This growth trajectory supports InvestingPro Tips indicating that net income is expected to grow this year, with 9 analysts having revised their earnings upwards for the upcoming period.

Recent announcements with OpenAI and OCI provide longer-term data center AI growth visibility, and Stifel believes additional engagements could drive further upside in an AI infrastructure total addressable market that continues to expand.

AMD is expected to provide more detail on its technology roadmap, customer traction, and market sizing at its 2025 Analyst/Investor Day next week.

In other recent news, Advanced Micro Devices Inc. (AMD) announced its third-quarter 2025 earnings, surpassing Wall Street expectations with a record revenue of $9.2 billion and earnings per share (EPS) of $1.20. Despite these robust financial results, the company’s stock experienced a decline in after-hours trading. The market reaction indicates potential investor concerns regarding future growth prospects, even in light of AMD’s positive performance and guidance. The earnings report highlights AMD’s continued financial strength, yet investor sentiment appears cautious. These developments are part of a series of recent events surrounding the company. Analyst firms have not provided any upgrades or downgrades in this context. Investors are closely watching AMD’s strategic moves and market position in light of these results.

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