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Investing.com - Cantor Fitzgerald has maintained its Overweight rating and $350 price target on Advanced Micro Devices (NASDAQ:AMD) following the company’s recent quarterly results. This target aligns with the high end of analyst expectations, as InvestingPro data shows AMD currently has a consensus recommendation of 1.65 (Strong Buy) with analyst targets ranging from $134.20 to $350.
AMD reported a modest beat for the September quarter, coupled with mixed guidance for the December quarter that included slightly better revenue but lower earnings per share expectations. The semiconductor company’s shares have risen 56% since Labor Day, despite a modest sell-off in after-hours trading following the results. InvestingPro data reveals an even more impressive 148.58% price return over the past six months and a 107.01% year-to-date gain, though the stock appears significantly overvalued compared to its Fair Value assessment.
Cantor Fitzgerald highlighted several positive factors supporting its bullish stance, including stronger-than-expected traditional server CPU demand helped by AI that management views as sustainable, and sustained double-digit year-over-year momentum in the AI GPU business. The firm expects AMD’s AI GPU revenues for calendar year 2025 to reach approximately $6.5 billion and to surpass CPU revenues in the second half of 2026. This growth trajectory aligns with AMD’s impressive 27.17% revenue growth over the last twelve months, with analysts forecasting 32% revenue growth for fiscal year 2025.
The analyst noted that AMD’s overall x86 franchise continues to take market share from Intel, evidenced by expected Data Center and Client CPU revenue growth of 32% and 47% respectively in calendar year 2025. The company’s Embedded business also appears to be bottoming out. As a prominent player in the Semiconductors industry with a market capitalization of $405.56 billion, AMD operates with a moderate level of debt and maintains strong liquidity, with current assets exceeding short-term obligations by a ratio of 2.49.
Potential concerns identified include ongoing headwinds for AI GPU business gross margins, particularly as the business moves to Helios rack scale, and the need for increased R&D investment causing operating expenses to grow faster than revenue in 2025. Cantor Fitzgerald maintains its view of $10 in earnings power for AMD into the 2027 timeframe, with focus shifting to the company’s upcoming Analyst Day next week.
In other recent news, Advanced Micro Devices (AMD) has reported strong third-quarter results with notable growth in its Data Center segment. The company’s Data Center revenue increased by 22% year-over-year, driven by both server CPUs and AI GPUs. This robust performance has led to several analysts adjusting their price targets for AMD. Rosenblatt Securities raised its price target to $300, citing the company’s strong quarterly performance. Similarly, Wedbush increased its target to $290, reflecting confidence in AMD’s growth outlook. Evercore ISI also raised its price target to $270 following AMD’s results that exceeded consensus estimates. Morgan Stanley adjusted its price target to $260, anticipating further insights from AMD’s upcoming analyst day. Despite these positive assessments, KeyBanc maintained its Sector Weight rating on AMD stock.
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