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On Wednesday, Barclays (LON:BARC) reiterated its Overweight rating on shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), with a price target of $140.00. Currently trading at $119.50, AMD shares sit near their 52-week low of $112.80, while analyst targets range from $110 to $250. According to InvestingPro analysis, AMD is currently trading below its Fair Value, with 13 additional exclusive insights available to subscribers. Barclays highlighted AMD’s Client business as a key factor in its performance, which has been outpacing market growth and contributing to the company’s recent financial success. The company has demonstrated solid financial health with a current ratio of 2.5 and revenue growth of 9.88% over the last twelve months. Despite this, there are concerns regarding the Data Center (DC) segment, specifically the MI300’s underperformance in Q4 compared to the Server CPU business, which was estimated at $1.75 billion.
The DC business is expected to remain flat in the first half of 2025 compared to the second half of 2024, with a downward trend in Q1. However, if the current rate is annualized, it could suggest a year-over-year revenue increase of approximately 30%. AMD remains confident that the DC business will conclude 2025 with higher rates than the exit rate of 2024. Additionally, the company anticipates ’tens of billions’ in revenue over the next several years. InvestingPro subscribers can access detailed financial forecasts and comprehensive analysis in the exclusive Pro Research Report, one of 1,400+ deep-dive reports available on the platform.
AMD is also accelerating through AI product transitions, with plans to advance the release of its MI350 (CDNA 4) to mid-2025. This will be followed by the introduction of a new compute (CDNA next) and rack-level architecture with MI400 a few quarters later. Barclays sees these developments as positive indicators for AMD’s stock, especially in light of the recent pullback in share price. With a market capitalization of $193.93 billion and a beta of 1.65 indicating higher volatility, AMD continues to be a prominent player in the semiconductor industry. The firm recognizes the company’s consistent track record of delivering on promised market share gains, which supports the maintained Overweight rating.
In other recent news, Advanced Micro Devices (AMD) has seen adjustments in stock price targets and ratings from several analyst firms. BofA Securities reduced AMD’s price target to $135 while maintaining a neutral rating, citing the company’s strong PC sales but acknowledging the challenges it faces in the competitive AI market. Northland, on the other hand, maintained an outperform rating and a price target of $175, emphasizing AMD’s potential in the server market and AI sector.
KeyBanc Capital Markets lowered its price target for AMD to $150, yet kept an overweight rating on the stock. The firm noted underwhelming demand for AMD’s MI325 and trimmed estimates for AMD’s data center GPU revenues in 2025 to $10 billion. Despite these adjustments, KeyBanc remains optimistic about AMD’s prospects, anticipating that the release of the MI355 in the second half of the year could drive growth in 2026.
Goldman Sachs downgraded AMD from Buy to Neutral and reduced the price target from $175 to $129, expressing concerns over the potential impact of Arm-based custom CPUs and increased competition in accelerated computing on AMD’s revenue growth and operating expenses. These recent developments reflect a varied outlook from different analyst firms, with some showing caution due to the competitive landscape and others maintaining a positive view of AMD’s long-term potential.
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