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Investing.com - Benchmark has raised its price target on AMD (NASDAQ:AMD) to $325.00 from $270.00 while maintaining a Buy rating, citing the company’s growing presence in the AI data center market. This new target represents a 30% upside from AMD’s current price of $248.93, though InvestingPro data suggests the stock is trading above its Fair Value, with a P/E ratio of nearly 150.
The price target increase comes despite AMD shares falling as much as 5% in after-hours trading following its latest earnings report. Benchmark noted this reaction doesn’t reflect AMD’s "strong record results" or "attractive outlook" in the rapidly expanding AI market. The stock has shown remarkable momentum, with a 148.58% price return over the past six months and 107.01% year-to-date according to InvestingPro data.
Benchmark highlighted AMD’s increasing competitiveness across both its traditional server CPU portfolio and AI GPUs, pointing to recent partnership announcements with major companies planning to use AMD GPUs and its planned 2026 rack scale server platform. This competitive positioning has helped drive AMD’s impressive 27.17% revenue growth over the last twelve months.
The firm cited AMD’s growing traction with customers seeking high-performance computing resources for training and inference workloads, particularly as these customers look for alternatives to Nvidia’s "dominant, but proprietary and closed architecture."
Recent agreements with OpenAI, Oracle, Meta, the US Department of Energy, and various hyperscalers were identified as proof of AMD’s improved competitive position, with the OpenAI partnership alone representing "well over $100 billion of revenue potential over the next few years," supporting AMD’s goal of achieving "tens of billions of annual AI revenue in 2027."
In other recent news, Advanced Micro Devices (AMD) has reported notable developments following its third-quarter financial results. The company experienced strong performance, with data center revenue increasing 22% year-over-year, driven by the MI350 product line. Despite some mixed guidance for the December quarter, AMD reported a modest beat for the September quarter, with slightly better revenue but lower earnings per share expectations. In response to these results, several analysts have adjusted their price targets for AMD.
Truist Securities raised its price target to $279, maintaining a Buy rating, while Rosenblatt Securities increased its target to $300, also keeping a Buy rating. Wedbush raised its price target to $290, reflecting confidence in AMD’s growth outlook. Cantor Fitzgerald reiterated its Overweight rating with a $350 price target, acknowledging the company’s recent performance. Meanwhile, KeyBanc maintained its Sector Weight rating after AMD’s strong third-quarter results and robust data center revenue growth. These developments highlight ongoing analyst confidence in AMD’s market position and growth potential.
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