Piper Sandler reiterates Overweight rating on AMD stock, citing GPU optimism

Published 15/09/2025, 14:16
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Investing.com - Piper Sandler has reiterated its Overweight rating and $190.00 price target on AMD (NASDAQ:AMD) stock following the company’s pre-quarter call last Friday. According to InvestingPro data, AMD currently trades at $158.57, with analysts’ targets ranging from $125.10 to $230.00. The company’s stock has shown remarkable strength, delivering a 57% return over the past six months.

The research firm noted that AMD management expressed strong optimism about business prospects through the second half of 2025 and into calendar year 2026.

According to Piper Sandler, all key core segments of AMD’s business appear to be tracking to forecast for the current quarter, with server, client, and GPU businesses identified as tailwinds.

The firm also highlighted potential traction from AMD’s embedded business as an additional positive factor for the company’s outlook.

Piper Sandler maintains its positive view on AMD, citing "fundamental tailwinds set to come on in the coming quarters" as the basis for its continued Overweight rating.

In other recent news, Advanced Micro Devices (AMD) has been the subject of several analyst revisions. Erste Group downgraded AMD from Buy to Hold, expressing concerns over the company’s operating margins, which are reportedly lower than the sector average. Despite AMD’s optimistic growth outlook for 2025, Erste Group highlighted a high price-to-earnings ratio and below-average return on equity as factors for the downgrade. Meanwhile, HSBC adjusted its price target for AMD to $185 from $200, citing revised assumptions for the average selling price of the MI355 chip. Truist Securities, however, maintained its Buy rating with a $213 price target, noting a positive shift in customer perception of AMD in the datacenter and AI markets. Seaport Global Securities also downgraded AMD, moving its rating from Buy to Neutral. This decision was based on concerns about the company’s AI accelerator business and the slow conversion of evaluation systems into volume orders. These developments provide investors with insights into AMD’s current standing and future potential.

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