Stifel reiterates buy rating on AMD stock amid expanded AI roadmap

Stifel maintained its buy rating and $132.00 price target on Advanced Micro Devices (NASDAQ:AMD), currently trading near $118.50, following the company’s launch of Instinct MI350 GPUs and preview of next-generation AI products. According to InvestingPro data, AMD shows strong financial health with a current ratio of 2.8 and moderate debt levels, suggesting solid positioning for its AI initiatives.

The chipmaker unveiled its MI350 GPUs and platforms while providing a preview of upcoming MI400 GPUs and an AI rack-level solution called Helios. AMD confirmed plans to match Nvidia (NASDAQ:NVDA)’s annual GPU architecture launch cadence, extending to an MI500 Series expected in 2027. With revenue growing at 21.7% and an impressive Altman Z-Score of 10.67, AMD demonstrates strong operational execution and financial stability.

AMD continues to emphasize its commitment to an open AI ecosystem and focus on inference workloads, which the company expects will drive the overall AI accelerator total addressable market (TAM) faster than training workloads over the next several years. Discover 15+ additional exclusive insights about AMD’s market position and growth potential with InvestingPro.

The semiconductor firm has increased its market size projection, now forecasting the accelerator TAM to exceed $500 billion by 2028, up from its previous estimate of $500 billion.

Stifel views AMD’s product roadmap execution positively and expects continued adoption in tier-1 AI infrastructure deployments, according to the research note.

In other recent news, Advanced Micro Devices (AMD) has made several significant announcements and strategic moves. The company introduced its Instinct MI350 Series accelerators, claiming a substantial increase in AI compute and inferencing capabilities. AMD also previewed its next-generation "Helios" AI rack design, indicating a focus on enhancing performance for AI models. In collaboration news, Infobell IT Solutions has partnered with AMD to develop enterprise AI solutions using AMD’s Instinct GPUs and EPYC CPUs, aiming to accelerate AI adoption in enterprises.

On the financial front, KeyBanc maintained a Sector Weight rating on AMD stock, despite lowering earnings estimates for the second quarter of 2025 due to anticipated charges. The revised earnings per share estimate is now $0.47, down from $0.90, with a full-year 2025 estimate reduced to $3.80. Evercore ISI raised its price target for AMD to $144 from $126, maintaining an Outperform rating, based on AMD’s progress in AI and datacenter GPUs. This follows AMD’s Advancing AI event, which showcased new AI chips aimed at challenging Nvidia’s market dominance.

The company’s strategic acquisitions, including server builder ZT Systems and talent from chip startup Untether AI, highlight its commitment to expanding its AI capabilities. AMD also announced the broad availability of its Developer Cloud, emphasizing its dedication to supporting the global developer community. These developments reflect AMD’s ongoing efforts to strengthen its position in the competitive AI chip market.

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