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Investing.com - Truist Securities has maintained its Buy rating and $279.00 price target on AMD (NASDAQ:AMD) stock, highlighting the company’s potential as an emerging "trusted partner" in the data center and AI space. AMD currently trades at a P/E ratio of 127.82 and has seen impressive price momentum with a 119.68% return over the past six months, according to InvestingPro data.
The research firm projects AMD is growing earnings per share at approximately 45% compound annual growth rate through calendar year 2030, while trading at only about 10 times its CY30 EPS power. This projection aligns with InvestingPro data showing AMD’s revenue grew 31.83% over the last twelve months, with analysts forecasting 32% growth for fiscal year 2025.
During its analyst day, AMD revealed a $1 trillion total addressable market and presented a financial model calling for 35% total sales growth, expanding gross profit margins and operating profit margins, along with 45% EPS growth.
Server accelerators represent a key growth driver for AMD, with customer orders and future indications suggesting an 80% compound annual growth rate in this segment, according to Truist Securities.
While execution remains a risk, Truist Securities noted that management expressed confidence regarding customers’ ability to power and fund the build-out, which somewhat mitigated the firm’s concerns about these potential challenges.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several analyst evaluations. TD Cowen reiterated its Buy rating with a price target of $290, highlighting AMD’s growth trajectory in the semiconductor market, particularly with a potential $1 trillion data center silicon market by 2030. Benchmark also maintained its Buy rating and set a $325 price target, following AMD’s first analyst day in three years. During this event, AMD doubled its estimated data center market size, driven by artificial intelligence demand, and projected earnings per share above $20, surpassing previous Wall Street forecasts.
Stifel reiterated its Buy rating with a $280 price target, noting AMD’s long-term strategy focused on technology leadership, software development, and targeted compute solutions. Cantor Fitzgerald maintained an Overweight rating and a $350 price target, emphasizing AMD’s ambitious financial model for 2028-2030, which includes a revenue growth rate of over 35% and operating margins exceeding 35%. Meanwhile, Morgan Stanley kept its Equalweight rating with a $260 price target, expressing a more cautious outlook due to uncertainty around AMD’s AI market share. These developments reflect a range of perspectives on AMD’s future prospects in the evolving semiconductor landscape.
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