KeyBanc maintains Sector Weight rating on AMD stock after strong results

Investing.com - KeyBanc has reiterated its Sector Weight rating on Advanced Micro Devices (NASDAQ:AMD) following the company’s third-quarter performance. AMD shares currently trade at $250.05, near their 52-week high of $267.08, with the stock delivering an impressive 76.5% return over the past year. According to InvestingPro data, AMD’s current P/E ratio stands at 151.2, suggesting the stock is trading at a premium valuation.

AMD reported strong third-quarter results and fourth-quarter guidance, with upside driven by robust Data Center revenues, which grew 22% year-over-year from both server CPU (Turin) and AI GPUs (MI355).

Looking ahead to the fourth quarter, AMD has guided for strong server CPU growth and continued expansion of its MI355 AI GPU business.

The company noted it has not recognized any revenues from China (MI308) in its results and guidance, a significant clarification regarding its geographic revenue distribution.

KeyBanc is modeling $6.7 billion in AI GPU revenues for AMD in 2025, though the firm noted that AMD is no longer breaking out its AI GPU revenue as a separate category.

In other recent news, Advanced Micro Devices (AMD) has seen several notable developments. The company’s third-quarter 2025 results exceeded expectations, with revenue surpassing consensus estimates by 5.6% and earnings per share coming in 2% above projections, as reported by Evercore ISI. Following these results, Evercore ISI raised its price target for AMD to $270, maintaining an Outperform rating. Similarly, Loop Capital increased its price target to $290, reflecting higher fiscal 2027 estimates due to recent MI400 Helios wins.

In anticipation of AMD’s upcoming analyst day, Morgan Stanley adjusted its price target to $260, citing expectations for more insights into the company’s MI450 opportunity. UBS also raised its target to $300, maintaining a Buy rating, and advised against selling before the analyst day. Meanwhile, Wedbush expressed confidence in AMD’s growth trajectory by increasing its price target to $290, also maintaining an Outperform rating. These adjustments highlight the optimism surrounding AMD’s future performance among various analyst firms.

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