Analysts Raise AMD Price Targets Despite Post-Earnings Dip
Advanced Micro Devices (AMD) delivered a strong third-quarter performance fueled by data center and gaming revenue, coupled with surging AI demand. Yet shares fell 5.3% in pre-market trading as markets had seemingly priced in the positive results beforehand.
Stifel analyst Ruben Roy lifted his price target to $280 from $240, maintaining a Buy rating. He attributes near-term outperformance to server CPU demand and client CPU market share gains rather than data center GPUs. Roy projects AMD's AI GPU revenue could reach $6-$6.5 billion in 2025, up from a prior $5 billion estimate.
The chipmaker's execution continues to impress analysts, with Baird also joining Stifel in raising targets. While AI Optimism drives long-term growth narratives, traditional semiconductor strengths currently underpin the bullish revisions.
