S&P 500 falls as traders turn sour on tech
Investing.com - Loop Capital has raised its price target on AMD (NASDAQ:AMD) to $290 from $240 while maintaining a Buy rating following the company’s better-than-expected second-half fiscal 2025 results and guidance. The new target represents potential upside from AMD’s current price of $250.05, with the stock trading just below its 52-week high of $267.08.
The increased price target reflects Loop Capital’s higher fiscal 2027 estimates, which include tens of millions in revenue from recent MI400 Helios wins with customers such as OpenAI and OCI. The new target assumes AMD shares will trade at approximately 31 times Loop Capital’s revised fiscal 2027 earnings per share estimate. According to InvestingPro data, AMD currently trades at a P/E ratio of 151.2, significantly higher than the sector average, suggesting the market is pricing in substantial future growth.
Loop Capital highlighted that AMD continues to rapidly gain market share from Intel, particularly in server markets but also in personal computers. The firm noted AMD’s growing momentum with its artificial intelligence strategy, including software and systems capabilities. This momentum is reflected in AMD’s impressive 27.17% revenue growth over the last twelve months, with a 31% five-year revenue CAGR according to InvestingPro data.
The research firm specifically mentioned AMD’s Instinct MI355 GPUs impacting the second half of fiscal 2025 and MI400 Helios expected to contribute in the second half of fiscal 2026. Loop Capital also pointed out that AMD’s above-consensus fourth-quarter fiscal 2025 revenue outlook does not include MI308X sales in China.
Loop Capital indicated there could be potential upside if the U.S. Department of Commerce grants more export licenses for AMD’s China business.
In other recent news, AMD reported robust third-quarter earnings, surpassing consensus expectations. The company experienced notable growth in its data center segment, with a 22% year-over-year increase, driven by its MI (GPU) and EPYC server products. Following these results, several research firms have adjusted their price targets for AMD. Piper Sandler raised its target to $280, emphasizing the solid quarterly performance. Roth/MKM also increased its target to $300, highlighting strong revenue growth and optimistic fourth-quarter guidance. Jefferies maintained its $300 price target, pointing to significant server CPU growth due to rising artificial intelligence demand. Baird echoed this sentiment, raising its target to $300 and citing potential catalysts from AMD’s upcoming financial analyst day. Stifel also lifted its target to $280, attributing near-term outperformance to increased demand for server CPUs and market share gains in client CPUs.
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