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Cantor Fitzgerald maintained its Overweight rating and $140.00 price target on AMD (NASDAQ:AMD), currently trading at $118.50, following the company’s Advancing AI 2025 Event held Thursday. According to InvestingPro data, AMD maintains strong financial health with a current ratio of 2.8, indicating robust liquidity to support its AI initiatives. The research firm noted the event featured announcements including the availability of AMD’s Instinct MI350 GPU and the launch of ROCm 7 software stack.
AMD also previewed its next-generation end-to-end integrated AI platform called Helios, scheduled for launch in 2026. The event included testimonials from industry leaders such as OpenAI, xAI, Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Oracle (NYSE:ORCL), Humain, Marvell (NASDAQ:MRVL), and Redhat, demonstrating AMD’s customer engagements. With revenue growth of 21.7% in the last twelve months and an impressive five-year revenue CAGR of 31%, AMD continues to strengthen its position in the semiconductor industry.
Cantor Fitzgerald expects a significant revenue step-up in the second half of 2025 with the MI350 launch, projecting Data Center GPU revenues of $6 billion. The firm sees potential upside to its 2026 estimates, suggesting AMD’s Data Center GPU revenue could reach $10-12 billion versus their current $8 billion model if AMD successfully scales its system-level solutions.
AMD shares underperformed modestly Thursday, falling 2% while the semiconductor index remained flat. Cantor Fitzgerald attributed this partly to the lack of new customer announcements, which investors had anticipated.
The research firm characterized 2025 as a "stopgap year" for AMD, with more meaningful revenue acceleration expected in 2026-2027 as the company establishes itself as a clear second source for GPUs in the artificial intelligence market. With analysts forecasting 23% revenue growth for FY2025, InvestingPro subscribers can access 14 additional key insights and a comprehensive Pro Research Report, offering deeper analysis of AMD’s growth trajectory and market position.
In other recent news, Advanced Micro Devices (AMD) introduced its new Instinct MI350 Series accelerators and previewed its next-generation "Helios" AI rack design at the Advancing AI event. The MI350 Series GPUs boast a 4x increase in AI compute power and a 35x leap in inferencing capabilities. AMD’s unveiling aims to challenge Nvidia (NASDAQ:NVDA)’s market dominance with its MI350 and MI400 series chips. Stifel reiterated its buy rating on AMD, maintaining a $132 price target, while Evercore ISI raised its price target to $144 from $126, citing increased visibility on data center GPUs.
AMD’s collaboration with Infobell IT Solutions Pvt. Ltd. was announced to develop enterprise-ready AI solutions using AMD Instinct GPUs and EPYC CPUs. The partnership aims to accelerate AI adoption for enterprises and cloud service providers. Additionally, AMD confirmed its roadmap to align with Nvidia’s annual release schedule, emphasizing its commitment to an open AI ecosystem. The company has also completed its acquisition of server builder ZT Systems, positioning itself to offer complete AI systems akin to Nvidia’s server-rack-sized products.
AMD continues to focus on enhancing its software capabilities, although its ROCm software has faced challenges against Nvidia’s CUDA platform. The company reported a 38x improvement in AI training and high-performance computing node efficiency, surpassing its five-year goal. Despite export restrictions on AI chips to China, AMD anticipates strong growth in its AI chip business.
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