AMD stock price target raised to $300 from $250 at BofA Securities

Investing.com - BofA Securities has raised its price target on AMD (NASDAQ:AMD) to $300 from $250 while maintaining a Buy rating on the stock. The semiconductor giant, currently valued at $380.65 billion, is trading near its 52-week high of $241.20, after delivering an impressive 168% return over the past six months.

The upgrade follows positive announcements at the 2025 OCP Conference in San Jose, California, where AMD showcased its MI450 Series "Helios" racks scheduled for launch in the second half of 2026.

BofA Securities noted improved visibility into deployment and ramp outlook for AMD’s new products, supported by key industry customers including Oracle, Meta, and OpenAI. The firm now assumes 50% of the OpenAI deal will materialize in its base model, representing a 6 gigawatt deployment over four years.

The new $300 price target is based on an unchanged 33x CY27E price-to-earnings ratio, which falls within AMD’s historical range of 14x to 55x. BofA Securities highlighted potential upside toward $10-11 earnings per share by calendar year 2027 if the OpenAI deal fully materializes. According to InvestingPro’s analysis, AMD is currently trading at a high P/E ratio of 141.16x, suggesting the stock may be overvalued at current levels. Subscribers can access 20+ additional ProTips and comprehensive valuation metrics.

The firm identified AMD’s upcoming Analyst Day in New York City on November 11 as the next major catalyst for the stock, while also noting relatively low ownership of AMD shares among active fund managers at approximately 20% of funds as of August.

In other recent news, Advanced Micro Devices (AMD) has been the focus of several significant developments. Wedbush has raised its price target for AMD from $190 to $270, maintaining an Outperform rating due to new AI partnerships that promise future revenue growth. This includes a major agreement with Oracle, where Oracle Cloud Infrastructure will deploy 50,000 AMD MI450 GPUs starting in the third quarter of 2026. Additionally, Mizuho has increased its price target for AMD to $275 from $205, citing a new deal with OpenAI that involves a "6GW Deal" over several years.

Furthermore, AMD unveiled its Helios open rack-scale AI platform at the Open Compute Project Global Summit. This platform integrates AMD Instinct GPUs, EPYC CPUs, and Pensando networking technologies to support advanced AI workloads. The Helios platform is designed for gigawatt-scale data centers, aligning with the Open Rack Wide standard by Meta. In related news, Wolfe Research upgraded Monolithic Power Systems’ stock rating to Outperform, with a price target of $1,200. The upgrade is based on a projected conservative path to 2027 earnings per share of $24 or higher.

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