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Investing.com - Jefferies has reiterated its Buy rating on Advanced Micro Devices (NASDAQ:AMD) stock, maintaining its price target of $300.00. Currently trading at $250.05 with a market capitalization of $405.79 billion, AMD is approaching Jefferies’ target. InvestingPro data shows 9 analysts have recently revised their earnings upwards for the upcoming period, reinforcing the bullish sentiment.
The research firm highlighted AMD’s server CPU growth as the most significant development, noting that many large customers are planning substantially larger CPU build-outs in coming quarters in response to artificial intelligence demand.
AMD reported AI revenue of $1.7 billion in Q3 and projects approximately $6 billion for calendar year 2025, though Jefferies emphasized that the more important development is the upcoming launch of MI450x in the second half of 2026, with customers including OpenAI and Oracle Cloud Infrastructure. This AI push is part of AMD’s broader growth strategy, with overall revenue reaching $29.6 billion and impressive year-over-year growth of 27.17%.
Gross margins performed better than expected despite higher AI revenue, with AMD seeing room to improve its Client business through premium offerings and increased Enterprise exposure. Operating expenses were slightly higher, but primarily focused on research and development. The company maintains a healthy gross profit margin of 50.99%, according to recent financial data.
Jefferies expects the growth story to remain on track with server tailwinds likely driving estimates higher through the first half of 2026 before MI450x revenue accelerates in the second half of that year. AMD stock has delivered a 76.51% return over the past year and is currently trading near its 52-week high of $267.08. However, InvestingPro analysis indicates the stock appears overvalued compared to its Fair Value, with a high P/E ratio of 151.2. Investors seeking deeper insights can access AMD’s comprehensive Pro Research Report, available among 1,400+ top stocks covered on the platform.
In other recent news, Advanced Micro Devices Inc. (AMD) reported its third-quarter 2025 earnings, surpassing Wall Street expectations with a record revenue of $9.2 billion and earnings per share of $1.20. Despite the positive financial performance, the company’s stock experienced a decline in after-hours trading, indicating investor concerns about future growth prospects. Additionally, Stifel raised its price target for AMD to $280 from $240, maintaining a Buy rating after the company delivered strong third-quarter results and a promising fourth-quarter outlook. The firm highlighted that AMD’s near-term success is driven by increased demand for server CPUs and market share gains in client CPUs. Similarly, Baird increased its price target for AMD to $300 from $240, citing potential catalysts such as the company’s upcoming financial analyst day and possible increases in its artificial intelligence total addressable market estimate. Both Baird and Stifel continue to hold positive ratings on the stock, reflecting confidence in AMD’s strategic direction. These developments underscore the company’s strong financial performance and optimistic outlook from analysts.
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