AMD stock price target raised to $290 from $270 at TD Cowen

Investing.com - TD Cowen has raised its price target on AMD (NASDAQ:AMD) to $290 from $270 while maintaining its Buy rating on the semiconductor company’s stock. This target remains below the Street’s high estimate of $350, according to InvestingPro data, which also shows AMD currently trading at a P/E ratio of nearly 150, suggesting the stock is significantly overvalued relative to its Fair Value.

The price target adjustment comes as AMD shows solid progress ahead of its upcoming Analyst Day and amid what TD Cowen describes as a data center GPU inflection point. The firm noted that AMD’s MI350 chip is ramping well into the upcoming MI450/Helios launch. This positive momentum aligns with AMD’s impressive 27.17% revenue growth over the last twelve months, reinforcing its position as a prominent player in the semiconductor industry.

TD Cowen also highlighted that AMD’s CPU momentum is continuing as expected, though market attention appears focused on the company’s long-term model to be presented at next week’s Analyst Day event.

The analyst firm’s updated outlook follows AMD’s recent beat-and-raise earnings report, which TD Cowen suggests has been overshadowed by last month’s OpenAI deal announcement and the company’s more than 50% stock rally over the past month.

Under what it calls "conservative assumptions," TD Cowen projects AMD could achieve earnings per share exceeding $10 by 2027, supporting its constructive view on the semiconductor stock at approximately 25 times earnings. This projection represents substantial growth from AMD’s current diluted EPS of $1.67. For investors seeking deeper insights, InvestingPro offers 20+ additional tips and comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence.

In other recent news, Advanced Micro Devices (AMD) has reported its third-quarter earnings, showcasing strong results with a 22% year-over-year increase in Data Center revenue. The company’s performance has prompted several analyst firms to adjust their price targets and ratings. Benchmark raised its price target to $325, citing AMD’s growing presence in the AI data center market, while maintaining a Buy rating. Similarly, Rosenblatt Securities increased its price target to $300, attributing the rise to AMD’s strong quarterly performance and growth across all market segments.

Truist Securities also adjusted its price target to $279, maintaining a Buy rating despite noting "modest imperfections" in AMD’s financial results. Cantor Fitzgerald reiterated its Overweight rating with a $350 price target, noting a modest beat for the September quarter and mixed guidance for the December quarter. Meanwhile, KeyBanc maintained its Sector Weight rating, emphasizing the robust Data Center revenues driven by server CPUs and AI GPUs. These developments reflect a strong outlook for AMD, particularly in the AI and data center sectors.

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