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Investing.com - Susquehanna raised its price target on AMD (NASDAQ:AMD) to $210.00 from $135.00 on Wednesday, maintaining a Positive rating ahead of the chipmaker’s second-quarter earnings report scheduled for Tuesday, August 5. The stock, currently trading at $177.44, has shown remarkable momentum with an 11.84% gain in the past week alone, approaching its 52-week high of $182.31. According to InvestingPro analysis, AMD is currently trading above its Fair Value, with 21 key insights available to subscribers.
The firm expects AMD to deliver in-line to slightly better results for the second quarter, citing stronger PC sales as Intel (NASDAQ:INTC) noted tariff-related pull-ins continued during the period. Susquehanna also highlighted AMD’s server business strength, with the company gaining market share in EPYC data center CPUs. The company’s strong market position is reflected in its robust revenue growth forecast of 24% for FY2025, while maintaining healthy gross margins of 53.58%.
A significant factor in the upgraded outlook is the U.S. government’s July announcement that it would review and potentially renew AMD’s license application to export MI308 AI chips to China. This development could reverse some of the previously expected $1.5 billion negative revenue impact from China restrictions.
Susquehanna now estimates AMD will recover approximately $800 million in revenue during the second half of 2025 from these potential China sales. The firm also believes much of the $800 million in MI308 inventory that AMD had planned to write down could now be sold at near-zero cost with high gross margins.
For the full year 2025, Susquehanna has increased its gross margin projection to 52.8% from 51.8% previously, while estimating AMD’s MI300 series revenue will reach slightly above $7 billion compared to its prior estimate of $6.2 billion.
In other recent news, several investment firms have updated their outlooks on Advanced Micro Devices (AMD). Morgan Stanley (NYSE:MS) raised its price target to $185, citing the reinstatement of AMD’s MI308 AI accelerator for the Chinese market and positive indicators in the PC segment. BofA Securities increased its price target to $200, highlighting potential AI shipment resumption to China in 2025, which could significantly boost AMD’s future revenue. Erste Group upgraded AMD’s stock rating to Buy, pointing to growing demand for high-performance CPUs and GPUs in data centers. Bernstein adjusted its price target to $140, factoring in the resumption of China AI business and forecasting Q2 2025 revenue of $7.52 billion with earnings per share of $0.49. Citi also raised its price target to $165, reflecting improving sentiment around the company. These developments come ahead of AMD’s upcoming earnings report and indicate a positive outlook among analysts.
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