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On Wednesday, UBS analyst Timothy Acuri adjusted the price target for AMD (NASDAQ:AMD) stock to $175 from the previous $190, while still recommending it as a Buy. Currently trading at $119.50, AMD remains a prominent player in the semiconductor industry, with analyst targets ranging from $110 to $250. The revision follows AMD’s recent financial disclosures, which Acuri described as a mixed bag, particularly in relation to the data center GPU business that the firm anticipates will undergo significant changes in 2025. According to InvestingPro data, AMD maintains a Fair Value that suggests the stock is currently undervalued.
AMD’s data center results fell short of expectations, primarily due to GPU performance, which also affected the company’s guidance for this segment. With a solid financial health score and current ratio of 2.5, AMD maintains strong operational flexibility. The company’s updates on its AI technology roadmap provided a glimmer of hope, especially with the anticipated early arrival of the MI350 GPU family. These GPUs are expected to be competitive with rival Nvidia (NASDAQ:NVDA)’s B200, especially in inference tasks, and could boost investor confidence in the second half of 2025. For deeper insights into AMD’s competitive position and financial metrics, InvestingPro subscribers have access to over 15 additional exclusive ProTips and comprehensive valuation analysis.
Despite this potential, Acuri suggests that until more details emerge about the MI400 series planned for 2026, these developments may not be enough to shift investor sentiment fully back to AMD’s favor. The analyst’s projection for AMD’s earnings per share in 2025 remains largely unchanged, but expectations for 2026 have been slightly reduced. This is primarily due to a less optimistic outlook on data center GPU revenue, now estimated at around $13 billion, coupled with anticipated increases in operating expenses.
In conclusion, while UBS has lowered its price target for AMD, the firm’s Buy rating stands firm. Acuri’s analysis indicates that while near-term challenges are evident, there remains optimism for AMD’s future performance, particularly in the AI and GPU markets.
In other recent news, major financial firms have updated their outlooks on AMD’s stock. Raymond (NSE:RYMD) James has revised its price target for AMD down to $150, maintaining an Outperform rating, while KeyBanc Capital Markets has lowered its target to $140, keeping an Overweight rating. Barclays (LON:BARC) has reiterated its Overweight rating with a $140 target, BofA Securities has cut its target to $135 maintaining a Neutral stance, and Northland has maintained its Outperform rating with a $175 target.
These adjustments follow AMD’s recent earnings report, which showed strong performance in the PC segment but underperformance in the Data Center segment. AMD’s management projects around $7.5 billion in revenue for the MI3xx in 2025, and also hinted at more customer engagements in the coming quarters. The company plans to release its MI350 series by mid-2025, which could contribute to a robust second half of the year.
Analysts from these firms have expressed confidence in AMD’s market position and growth in the AI sector, despite the mixed results in the Data Center GPU segment. They anticipate that upcoming product launches and overall growth trajectory will support AMD’s progress in the competitive technology market. The price target adjustments reflect a cautious outlook, acknowledging both the company’s near-term strengths and the challenges it faces in the AI market.
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