Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Wednesday, Northland reiterated its Outperform rating and $175.00 price target for AMD stock (NASDAQ:AMD), currently trading at $119.50, following the company’s latest financial results. According to InvestingPro analysis, AMD appears slightly undervalued, with analyst targets ranging from $90 to $250, reflecting the stock’s high volatility (Beta: 1.65). The semiconductor firm reported earnings that matched expectations and provided guidance for the first quarter that aligns with the consensus. With a solid current ratio of 2.5 and revenue growth forecast of 13% for FY2024, AMD anticipates robust double-digit growth in artificial intelligence (AI) for the calendar year 2025 and expects to increase its market share in the server and PC sectors. (InvestingPro subscribers have access to 14 additional key insights about AMD’s growth potential.)
Despite AMD projecting AI revenue to remain consistent in the first half of 2025 compared to the second half of 2024, Northland analysts have forecasted a stronger performance in the latter half of the year. They predict AI revenue to reach $9.2 billion, bolstered by the release of the MI350 in the second half. This projection comes after AMD’s stock experienced a rebound the previous day.
The analysts at Northland addressed investor worries regarding the flat AI revenue outlook for the first half of 2025, emphasizing their expectation of a more substantial uptick later in the year. They also noted the stock’s recovery, suggesting that the initial surge might attract short-term investors who could sell their shares early in the trading session. Northland’s analysis recommends buying into AMD amidst these temporary fluctuations, indicating a confidence in the stock’s potential growth.
In other recent news, AMD’s stock price targets have been adjusted by several firms following the company’s recent financial disclosures. Goldman Sachs lowered its price target to $125 from $129, maintaining a neutral rating. The adjustment comes after AMD’s Q4 2024 results and Q1 2025 guidance, which showed steady progress in the Client and Server CPUs market. UBS also revised its price target for AMD, decreasing it to $175 from $190, while still recommending it as a Buy. The firm pointed to the mixed results in the data center GPU business as a reason for the adjustment.
Raymond (NSE:RYMD) James reduced its price target for AMD from $180 to $150, but retained an Outperform rating. This decision was influenced by the company’s Q4 2024 results and Q1 2025 revenue forecast, which exceeded consensus expectations due to performance in the PC segment. KeyBanc Capital Markets reduced its price target to $140 from $150, keeping its Overweight rating. The decision was based on AMD’s recent earnings report, which showed Q4 results aligning with forecasts and Q1 guidance meeting expectations.
Lastly, Barclays (LON:BARC) reiterated its Overweight rating on AMD shares, with a price target of $140. The firm highlighted AMD’s Client business as a key factor in its performance, which has been outpacing market growth. These adjustments reflect recent developments in the company’s financial performance and future outlook.
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