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Investing.com - Morgan Stanley (NYSE:MS) raised its price target on AMD (NASDAQ:AMD) to $185.00 from $121.00 on Wednesday, while maintaining an Equalweight rating on the semiconductor company’s stock. The new target sits within the current analyst range of $111 to $223, as tracked by InvestingPro, for the $287.7 billion chip maker.
The investment bank cited multiple factors for its significantly higher valuation, including the reinstatement of AMD’s MI308 AI accelerator for the Chinese market and positive indicators in the PC segment following Intel (NASDAQ:INTC)’s recent quarterly results. The optimism appears justified, with AMD showing impressive momentum through a 11.84% gain last week and trading near its 52-week high of $182.31.
Morgan Stanley increased its 2026 price-to-earnings multiple from 22x to 33x, based on midpoint weighted earnings per share of $5.49, which translates to approximately 30x non-GAAP earnings per share of $6.12, aligning AMD’s valuation with other large-cap AI semiconductor companies.
The firm noted that the case for upside to its model of approximately $6 billion in AI revenue for AMD has become clearer, despite what it characterized as AMD’s "somewhat secondary position in AI" compared to competitors.
Morgan Stanley acknowledged some uncertainty regarding when the MI308 product might resume shipping to China, and consequently left its near-term financial projections for AMD unchanged pending further clarity.
In other recent news, Advanced Micro Devices (AMD) has seen a series of analyst updates and price target revisions. BofA Securities raised its price target for AMD to $200, citing potential revenue boosts from resuming AI shipments to China in 2025 and 2026. Erste Group upgraded AMD’s stock rating to Buy, highlighting the company’s growth prospects in data center environments due to increasing demand for high-performance CPUs and GPUs. Meanwhile, Bernstein SocGen Group increased its price target to $140, noting the resumption of AMD’s China AI business and forecasting Q2 2025 revenue of $7.52 billion, slightly above its previous estimate. Citi also raised its price target to $165, attributing the change to improving sentiment around AMD. Furthermore, Mizuho (NYSE:MFG) lifted its price target to $175, following the U.S. government’s announcement allowing AI GPU shipments to China as part of trade negotiations. These developments reflect a positive outlook among analysts regarding AMD’s future performance.
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