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Investing.com - Stifel has raised its price target on AMD (NASDAQ:AMD) to $190 from $161 while maintaining a Buy rating, citing strong revenue performance and AI compute potential. The semiconductor giant, currently trading at $174.31 with a market capitalization of $282.63 billion, shows strong momentum with a 58% gain over the past six months. According to InvestingPro analysis, AMD is currently trading above its Fair Value.
AMD reported second-quarter revenue of $7.7 billion, up 32% year-over-year and exceeding consensus estimates, driven by strong EPYC and Ryzen CPU sales that offset Instinct GPU headwinds from U.S. export controls on China shipments. InvestingPro data shows AMD maintains strong financial health with a solid current ratio of 2.8 and operates with moderate debt levels. Get access to 20 more exclusive ProTips and comprehensive analysis with InvestingPro.
The company’s Data Center revenue rose 14% to $3.2 billion, while Client and Gaming segments increased 69% to $3.6 billion. The Embedded segment declined 4%. Adjusted gross margin was 54%, excluding an $800 million write-down, with earnings per share at $0.48, in line with expectations.
For the third quarter, AMD guided revenue of $8.7 billion, representing 28% year-over-year and 13% sequential growth, above consensus estimates with gross margin expected to remain flat despite stronger Data Center GPU expectations. The company maintains a healthy gross profit margin of 53.58% and has demonstrated consistent revenue growth with a 5-year CAGR of 31%.
Stifel identified several key growth drivers for AMD, including MI35x/400 series scaling to more significant AI revenue, continued EPYC share gains in cloud and enterprise markets, sovereign AI deals like the HUMAIN collaboration, ROCm software enhancements, and potential MI308 China sales following licensing.
In other recent news, Advanced Micro Devices (AMD) reported a strong quarterly performance, with earnings surpassing expectations. The company posted $7.7 billion in revenue for the second quarter of 2025, which exceeded Deutsche Bank (ETR:DBKGn)’s estimate by 4%. Additionally, AMD provided an optimistic third-quarter guidance of $8.7 billion, surpassing Deutsche Bank’s forecast by 2%. UBS reiterated its Buy rating on AMD, highlighting the revenue beat and guidance above consensus, driven largely by the gaming segment. Barclays (LON:BARC) also raised its price target for AMD to $200, citing strong artificial intelligence trends in its data center business. Raymond (NSE:RYMD) James increased its price target to $200 as well, noting that AMD’s results and outlook exceeded consensus expectations. Meanwhile, Goldman Sachs maintained a Neutral rating with a $150 price target, suggesting the stock might remain range-bound. Deutsche Bank raised its price target to $150, acknowledging growth in AMD’s Instinct product line. These developments reflect a generally positive outlook from analysts on AMD’s recent performance and future prospects.
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