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Investing.com - Jefferies maintained its Buy rating and $300.00 price target on AMD (NASDAQ:AMD) following the company’s 2025 Analyst Day. This target represents a 26% upside from AMD’s current price of $237.52, though InvestingPro data indicates the stock may be trading above its Fair Value, with a P/E ratio of 127.75.
The research firm noted that AMD’s presentation delivered a positive outlook across all business segments, with the company expanding its AI silicon total addressable market (TAM) projection to over $1 trillion by 2030.
AMD’s financial model exceeded expectations, with the company forecasting revenue growth above 35% and gross margins between 55-58%, potentially yielding more than $20 in earnings per share before 2030. This ambitious projection builds on AMD’s current revenue growth of 31.83% and gross profit margin of 51.46%, according to InvestingPro data.
The chipmaker projects a 35%+ compound annual growth rate over the next 3-5 years, driven by AI growth exceeding 80%, while general-purpose servers are expected to grow over 20% as their market expands to $60 billion by 2030.
Jefferies indicated that AMD’s earnings could potentially reach closer to $30 per share if the company executes successfully, though future performance remains largely dependent on market reception to the company’s MI400 and MI500 Series GPUs. With analyst targets ranging from $134.20 to $380, AMD’s growth story continues to attract attention despite its current valuation metrics suggesting the stock may be trading at a premium.
In other recent news, AMD presented its long-term growth strategy at the 2025 Financial Analyst Day, outlining ambitious targets for more than a 35% revenue compound annual growth rate and non-GAAP earnings per share exceeding $20 over the next three to five years. The company expects its data center business to grow at more than a 60% CAGR, driven by the AMD Instinct MI350 Series GPUs, which have been described as the fastest ramping product in AMD’s history. AMD plans to launch Helios systems with Instinct MI450 Series GPUs in the third quarter of 2026, followed by the MI500 Series in 2027.
Goldman Sachs reiterated its Neutral rating on AMD with a price target of $210, noting that the company’s long-term financial targets exceeded Wall Street expectations, particularly in the datacenter segment. Similarly, Deutsche Bank maintained its Hold rating on AMD, setting a price target of $250, following a meeting described as "very constructive and AI/DC-driven." The chipmaker raised all key financial target metrics compared to those last provided in 2022.
Additionally, OpenAI, which has secured deals with AMD to power its AI models, revealed plans to end 2025 with an annualized revenue run rate exceeding $20 billion, amidst its ongoing data center expansion.
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