US stock futures dip as Nvidia earnings spark little cheer
On Friday, Mizuho (NYSE:MFG) Securities adjusted its outlook on AMD stock, increasing the price target to $135 from the previous $117, with the stock currently trading at $117.17. The firm’s analysts maintained an Outperform rating on the shares of the semiconductor company, which has demonstrated strong momentum with an 11.81% return over the past week. The revision reflects anticipated tailwinds from the company’s advancements in artificial intelligence (AI) and partnerships, as well as product launches expected to impact the latter half of 2025. According to InvestingPro data, AMD maintains a GOOD financial health score, suggesting solid fundamentals supporting its growth initiatives.
The analysts at Mizuho cited AMD’s HUMAIN partnership, valued at $10 billion, as a significant factor for the raised price target. This collaboration is projected to propel AMD’s AI initiatives forward into 2026 and beyond. The firm’s confidence in AMD’s strategic direction is underscored by the valuation multiple applied to its forecasted earnings, increasing from 18.1 times to 20.9 times expected profits in fiscal year 2026. With revenue growth of 21.71% over the last twelve months and a market capitalization of $189.85 billion, AMD continues to strengthen its position in the semiconductor industry.
Furthermore, Mizuho highlighted the upcoming MI355x products as a positive development for AMD. These products are anticipated to provide a boost in the second half of 2025, potentially balancing some of the challenges posed by the ban on MI308 sales in China. The ban has been a point of concern for investors, but Mizuho’s outlook suggests that AMD’s product pipeline could help mitigate related risks.
The Outperform rating by Mizuho indicates a bullish stance on AMD’s stock, suggesting that the firm believes AMD’s shares will perform better than the overall market or its sector in the near future. This rating remains unchanged from the firm’s previous assessments.
AMD’s focus on AI and strategic partnerships, along with its product roadmap, are key drivers behind Mizuho’s updated price target and optimistic view. The firm’s analysis points to these elements as critical in supporting AMD’s growth and market position in the coming years. For deeper insights into AMD’s valuation and growth prospects, including 17 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find exclusive research reports and detailed metrics that can help inform your investment decisions.
In other recent news, Advanced Micro Devices, Inc. (NASDAQ:AMD) has announced a $6 billion share buyback program, enhancing its current repurchase capacity to an estimated $10 billion. This decision reflects AMD’s strong financial position and commitment to shareholder returns, as highlighted by CEO Dr. Lisa Su. Additionally, AMD has partnered with Saudi Arabia’s HUMAIN on a $10 billion AI infrastructure project, aiming to deploy 500 megawatts of AI compute capacity by 2026. This collaboration seeks to establish a scalable and resilient AI infrastructure powered by AMD’s comprehensive AI compute portfolio.
In product news, AMD launched the EPYC 4005 Series processors, designed for small and medium-sized businesses and IT service providers. These processors reportedly outperform competing products and have received support from partners like OVHcloud and Supermicro. In market developments, Mercury Research noted a decline in AMD’s microprocessor market share, which decreased by 99 basis points to 21.1% in the first quarter of 2025. Despite this, Evercore ISI maintained an Outperform rating for AMD, with a price target of $126, citing confidence in the company’s long-term strategy and growth potential in the datacenter GPU business.
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