EU and US could reach trade deal this weekend - Reuters
Investing.com - Erste Group upgraded Advanced Micro Devices (NASDAQ:AMD) stock rating from Hold to Buy on Wednesday. AMD’s stock, currently trading at $154.72, has shown impressive momentum with a 26% gain over the past six months. According to InvestingPro data, the company’s current market valuation appears slightly above its Fair Value.
The research firm cited AMD’s growth outlook for 2025, particularly noting increasing demand for high-performance CPUs and GPUs in data center environments.
Erste Group expects AMD’s operating margin to increase in the medium term, which should contribute to accelerated profit growth next year.
The firm believes AMD’s stock price will continue to rise due to the company’s growth prospects in these markets.
AMD has been expanding its presence in the data center segment, competing more aggressively with rivals in the high-performance computing space.
In other recent news, Advanced Micro Devices (AMD) has received approval from the US government to resume shipments of its MI308 chips to China. This development follows a similar decision for Nvidia (NASDAQ:NVDA), indicating a favorable shift in trade policies. Alongside this, several financial firms have adjusted their price targets for AMD. Bernstein has raised its price target to $140 from $95, maintaining a Market Perform rating, while Citi increased its target to $165 from $145, citing improving sentiment. Mizuho (NYSE:MFG) has also raised its price target to $175 from $152, pointing to the Trump administration’s policy allowing AI GPU shipments to China. Bank of America Securities has set a price target of $175, up from $130, due to strong data center GPU prospects. These changes reflect optimistic projections for AMD’s revenue and earnings, with Bernstein forecasting Q2 2025 revenue of $7.52 billion and earnings per share of $0.49. Analysts highlight the potential for significant growth in AMD’s data center GPU shipments, with BofA projecting an additional $1 billion to AMD’s 2025 forecast. These developments signal a positive outlook for AMD in the semiconductor industry.
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