AMD stock rating upgraded by Melius on AI growth prospects

Published 23/06/2025, 11:50
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Investing.com - Melius Research upgraded Advanced Micro Devices (NASDAQ:AMD) from Hold to Buy on Monday, raising its price target to $211.00 from $135.00. The semiconductor giant, currently trading at $128.24 with a market capitalization of $208 billion, has shown strong momentum recently according to InvestingPro data.

The semiconductor company’s stock has demonstrated significant volatility, moving from $135 to $211 in 2024 before falling to as low as $78 in 2025, according to Melius Research’s analysis. With a beta of 1.99 and impressive revenue growth of 21.7% in the last twelve months, AMD continues to show both growth potential and market sensitivity.

The upgrade comes as Melius believes AMD is "only in the middle of a run" with substantial upside potential despite missing "the initial move off the bottom." The firm raised its estimates for AMD over the next three years.

Melius cited growing opportunities in graphics processing units (GPUs) for 2026-2028, pointing to "a sustainable surge in inferencing" where AMD’s platform appears increasingly attractive to hyperscalers and sovereign entities.

The research firm increased its target to $175 from $110 and projects that AMD’s earnings per share "can top $8 within 2 years," suggesting continued growth in the company’s artificial intelligence-related business segments.

In other recent news, Advanced Micro Devices (AMD) has been in the spotlight with several key developments. Piper Sandler raised its price target for AMD to $140 from $125, maintaining an Overweight rating, due to enthusiasm about AMD’s recent product launches, particularly the Helios rack, which is expected to boost the company’s GPU segment. Meanwhile, TD Cowen reiterated a Buy rating with a $115 price target, highlighting AMD’s progress in the AI market and its strategic shift towards comprehensive system solutions. UBS also maintained a Buy rating and set a $150 price target, noting the alignment of AMD’s AI event with expectations and the introduction of Amazon (NASDAQ:AMZN) as a new customer.

Bernstein, however, maintained a Market Perform rating with a $95 price target, citing the lack of major surprises at AMD’s AI technology event, despite updates on its product roadmap. Additionally, AMD has formed a strategic partnership with Microsoft (NASDAQ:MSFT) to develop silicon technology for future Xbox consoles, emphasizing improved graphics and AI-powered experiences. This collaboration continues AMD’s role in providing chips for current Xbox systems. These recent developments reflect AMD’s ongoing efforts to strengthen its position in the competitive semiconductor and AI markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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