Latest news with #MI350
Miami Herald
6 hours ago
- Business
- Miami Herald
Analysts reset AMD stock price target ahead of key earnings
Advanced Micro Devices (AMD) stock is on the rise as the chipmaker gains momentum in the AI race, following months of lagging behind Nvidia (NVDA) . It was reported earlier this week that AMD is thinking of raising the price of its Instinct MI350 AI accelerator to $25,000 from $15,000, according to Wccftech's report citing HSBC's analyst note. The nearly 70% increase in MI350's price could mean a notable growth in AMD's future revenue. The price increase indicates that AMD is seeing demand for its AI products, the report said. AMD's stock had tumbled in 2024 and earlier this year on concerns about trading uncertainties and its competitive footing. Now, with news on the company's advanced chips, Wall Street is starting to reconsider AMD's long-term potential in the booming AI space. In June, AMD's CEO Lisa Su said at a developer conference that the MI350 series is faster than Nvidia's. Meanwhile, the MI350 is cheaper than its counterpart product from Nvidia's Blackwell B200, Wccftech reported. Su previously predicted $500 billion in AI accelerators market revenue by 2028, but she now sees it topping that number. "People used to think that $500 billion was very large number," she said. "Now it seems well within grasp." Shares of AMD are up more than 14% over the past five trading days. Image source: Cheng/AFP via Getty Images Three months ago, AMD reported stronger-than-expected first-quarter results and gave a solid forecast for the second quarter, even as it faced challenges from the broader economy and export restrictions on AI chip sales to China. The company then posted adjusted earnings of 96 cents per share on $7.44 billion in revenue, both beating Wall Street's expectations. Its data center business generated $3.7 billion in sales, a 57% increase from a year earlier and also ahead of analyst estimates. Related: Jim Cramer drops blunt 6-word message on Nvidia stock "While we face some headwinds from the dynamic macro and regulatory believe they are more than offset by the powerful tailwinds from our leadership product portfolio," Su said in May. AMD is set to report its second-quarter earnings on August 5. Wall Street expects earnings of 47 cents per share on revenue of $7.41 billion. Several analysts are more optimistic and believe the company may deliver stronger results than expected. Bank of America has raised its price target on AMD to $200 from $175, maintaining a Buy rating ahead of the earnings report. The firm said it expects AMD to beat expectations in both Q2 and Q3, driven by strong demand for its AI GPUs and CPUs, according to a research note published on July 29. BofA sees upside supported by solid demand for CPU and GPU, stronger pricing for AI chips, and a robust cloud capex environment, analyst Vivek Arya wrote. Related: Analysts turn heads with new Alphabet stock price target after earnings The firm said AMD is well-positioned to gain market share in both the PC and server CPU markets over the next two years. The firm also expects AMD to maintain a growing presence in the AI accelerator space, benefiting from its current product momentum and competitive pricing compared to Nvidia. "Longer-term, we expect AMD to reach more than 30% of overall CPU market by CY26, up from just below 20% in CY23, as well as potentially 4-5% of AI GPU market," Arya noted. There may also be additional upside if AMD receives regulatory approval to resume AI chip shipments to China, according to the report. While not yet confirmed, BofA sees that potential as a key factor for AMD's GPU sales outlook. UBS also recently raised its price target to $210 from $150 and maintained a buy rating, citing strength in both the PC and server segments, reported on July 29. More Tech Stocks: Analyst who correctly predicted Rocket Lab stock surge resets forecastVerizon Q2 earnings report surprises with remarks on tax reformFund manager who forecast Nvidia stock rally reboots outlook The firm said it expects upside in AMD's second-quarter results, with guidance likely to beat Wall Street expectations. AMD stock has climbed more than 46% year-to-date. Nvidia is up 30% over the same period. Related: Legendary fund manager has blunt message on 'Big Beautiful Bill' The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
a day ago
- Business
- Business Insider
‘Don't Miss the Upside,' Says UBS About AMD Stock Ahead of Earnings
Advanced Micro Devices (AMD) stock climbed over 4% on Monday after reports said the company will raise the price of its high-end AI chip, MI350 AI. Following the news, UBS Top analyst Timothy Arcuri reiterated his Buy rating on AMD and lifted his price target from $150 to $210. The new price target indicates a 21% upside from current levels. The analyst sees growing demand in both PC and data center markets, and stronger investor sentiment ahead of the Q2 print on August 5. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. UBS Sees More Upside for AMD Stock The five-star analyst believes AMD's decision to raise the price of its MI350 AI chip shows growing confidence in its product line. Recent reports claim that the chip's price has gone up to $25,000 per unit, from $15,000 earlier. Even with this increase, the MI350 still costs less than Nvidia's (NVDA) latest AI chips. Arcuri views the move as a sign of growing demand for AMD's chips and believes they can now compete more directly with Nvidia's in both performance and pricing. Arcuri also noted that AMD's PC and server businesses are showing signs of recovery. With demand picking up, he believes the company is well-positioned to beat Wall Street estimates when it reports earnings on August 5. He expects the company to further gain share in the fast-growing AI chip market over the coming months. It is worth noting that Arcuri ranks 7 out of more than 9,900 analysts tracked by TipRanks. He has a success rate of 73%, with an average return per rating of 33% over a one-year timeframe. What to Expect from AMD's Q2 Earnings Wall Street analysts expect AMD to report earnings of $0.48 per share for Q2, down 30% from the year-ago quarter. Meanwhile, analysts project Q2 revenues at $7.41 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of about 27%. Is AMD a Good Stock to Buy? On TipRanks, AMD stock has a Moderate Buy consensus rating based on 26 Buys and 10 Holds assigned in the last three months. The average AMD price target of $147.84 suggests a downside potential of 14.87% from its current price. Year-to-date, shares of the company have gained about 43.8%.
Business Insider
2 days ago
- Business
- Business Insider
‘Big Things Ahead,' Says Top Investor About AMD Stock
Advanced Micro Devices (NASDAQ:AMD) stock has experienced a volatile ride in the AI space. Once hailed as a potential challenger to segment leader Nvidia, the narrative was later tempered, with skeptics doubting AMD's ability to compete at the highest level. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Yet, those doubts now appear to be fading. The Lisa Su-led company is increasingly viewed as a strong contender, perhaps not to dethrone Nvidia, but certainly to be the second-best option in the AI chip race. That renewed optimism is reflected in the stock's recent performance, with shares up 122% since bottoming out in April. And with AMD set to report Q2 earnings next Tuesday (Aug 5), some investors believe the rally still has legs. One of them is top investor Danil Sereda, who's ranked among the top 2% of stock pickers on TipRanks. Looking ahead, Sereda thinks the chip giant is set to deliver an investor-pleasing readout. 'AMD heads into Q2 FY2025 earnings with strong momentum, driven by robust AI and data center demand, and a history of consistent double-beats,' the 5-star investor said. Indeed, while questions about AMD's AI positioning have lingered, the company has continued to turn in solid financial results. That was evident in Q1, when AMD topped both revenue and earnings estimates. A key driver was the Data Center segment, which posted $3.7 billion in revenue – a 57% year-over-year increase – thanks to strong demand for EPYC CPUs and Instinct GPUs. During the earnings call, management emphasized growing traction with hyperscalers and enterprise customers, supported by more than thirty new cloud instances and expanding on-premise adoption for the seventh consecutive quarter. Sereda believes this momentum is far from a fluke. With MI300 series GPUs gaining traction, the rollout of MI350 samples underway, and Oracle making a multi-billion-dollar commitment to MI355x, the investor sees AMD's AI strategy gaining meaningful ground. These developments, coupled with new Tier 1 partnerships and the ZT Systems acquisition, suggest AMD is positioning itself to capture a growing share of what was estimated last year as a $500 billion AI compute market – a figure that may now understate the opportunity, given sustained hyperscaler demand. 'With the MI350 and upcoming MI400 series, AMD should eventually narrow the gap with Nvidia,' Sereda opined. Given the strong setup heading into the earnings print, Sereda admits it might look risky to recommend buying the stock just a week ahead of results, but he believes the odds of another upbeat quarter are 'quite high,' especially with the Data Center segment poised to extend its revenue share gains and boost margins and overall growth. In light of this bullish thesis, Sereda rates AMD shares a Buy. (To watch Sereda's track record, click here) Meanwhile, Wall Street takes a more measured stance. AMD stock holds a Moderate Buy consensus, based on 26 Buys and 10 Holds. However, with the average price target of $147.83 implying a ~15% downside from current levels, some analysts may soon be forced to revisit their forecasts. (See AMD stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Time of India
3 days ago
- Business
- Time of India
AMD stock surges 5% to a new 52-week high—will August 5 earnings finally trigger the breakout Wall Street's been betting on?
AMD stock hits 52-week high as AI momentum and earnings outlook fuel investor optimism- Advanced Micro Devices (AMD) stock is making headlines again as it recently surged to a fresh 52-week high of $174.16, fueled by accelerating AI chip momentum, bullish analyst upgrades, and a highly anticipated Q2 2025 earnings report. The stock's parabolic rise reflects growing investor confidence in AMD's expanding presence in artificial intelligence, data centers, and high-performance computing. As the AI chip war between AMD and Nvidia intensifies, market watchers are closely tracking every catalyst, from the company's MI350 GPU series to forward-looking analyst targets reaching up to $200 per share. With AMD earnings scheduled for August 5, 2025, the stage is set for what could be a pivotal moment for investors. 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This move marks a 24% gain over the past year and nearly a 46% jump in the last six months. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Never Put Eggs In The Refrigerator. Here's Why... Car Novels Undo This impressive rally comes amid growing market enthusiasm around AMD's positioning in the AI hardware space, particularly with its latest MI350 Instinct series, which is already gaining traction among enterprise and hyperscale cloud customers. The price momentum reflects renewed investor sentiment as AMD continues to grab market share from rivals like Intel and positions itself as a formidable challenger to Nvidia in the booming AI GPU market. Live Events Analysts raise AMD stock price targets ahead of earnings AMD's strong performance has prompted several major analysts to revise their forecasts. Melius Research recently upgraded AMD to Buy, lifting its target from $110 to $175 , citing accelerating AI traction and a robust product cycle. HSBC followed up with a bullish call, assigning a Buy rating and a price target of $200, pointing to AMD's pricing advantage and competitiveness in the AI chip landscape. According to analysts, AMD's MI350 chips , especially the MI355X , offer a balance of power and affordability, with average selling prices near $25,000 —30% cheaper than comparable Nvidia offerings. These upgrades are part of a broader Wall Street trend recognizing AMD as a key beneficiary of enterprise AI adoption, hyperscale data center upgrades, and increasing cloud GPU demand. AMD AI chips gaining traction across enterprise customers AMD's MI350 Instinct GPU series , launched earlier this year, is already making waves due to its performance-per-dollar edge over Nvidia's H100 chips. The MI355X model, in particular, is being pitched as a high-efficiency AI accelerator designed for training and inference at scale. What sets AMD apart is not just the hardware. The company has been steadily building its ROCm (Radeon Open Compute) software stack to rival Nvidia's CUDA, giving developers more flexibility and cost-effective alternatives. This is critical for long-term success, as software support often dictates hardware adoption in AI workloads. With the MI400 series expected to launch in 2026, AMD is well-positioned to further disrupt the AI silicon market, particularly in inference workloads, where Nvidia currently dominates. Earnings preview: All eyes on August 5 earnings release AMD is scheduled to release its Q2 2025 earnings on August 5, and expectations are running high. Analysts predict revenue growth near 35% year-over-year, with particular strength in the data center and AI segments. In Q1 2025, AMD reported $7.44 billion in revenue, up 36% YoY, with net income per share of $0.96, well above Wall Street estimates. The data center business accounted for $3.67 billion, a 57% YoY surge. The company's guidance for Q2 revenue is between $7.1 billion and $7.7 billion , slightly ahead of market consensus. Investors are watching for updates on MI355X adoption , AI market share gains, and gross margin expansion, all of which will shape AMD's growth narrative into 2026. High valuation raises questions about future upside Despite the strong performance, some market observers are raising caution flags around AMD's valuation metrics. The stock is currently trading at a forward P/E of ~40, with a price-to-free-cash-flow (P/FCF) ratio near 98, and a PEG ratio around 1.3. While these numbers are not unheard of in the high-growth tech space, they do suggest that much of the expected future growth is already priced in. Any earnings miss or delayed product roadmap execution could lead to a sharp correction. Key concerns include production delays at TSMC, which manufactures AMD's AI chips, and the challenge of scaling its ROCm software ecosystem to compete with Nvidia's dominant CUDA platform. Technical analysis: Resistance near $175, support around $135 From a technical standpoint, AMD faces short-term resistance at $175 , which coincides with its current 52-week high. If it breaks through this level following strong Q2 results, the next target could be in the $200–$215 range , echoing March 2024's intraday highs. Support levels to watch include $135 (near previous breakout points) and $115 , which may act as a safety zone in case of a broader tech sell-off or earnings disappointment. These levels are critical for swing traders and momentum investors looking to capitalize on short-term volatility in a high-beta name like AMD. How AMD is positioned against Nvidia and intel in AI AMD's continued investment in AI acceleration and data center GPUs is transforming its position in the tech ecosystem. With Nvidia dominating the market through its H100 and the upcoming Vera Rubin platform, AMD's success depends on two key factors: product differentiation and developer support. Unlike Nvidia, which has a tightly integrated hardware-software stack, AMD is relying on open-source flexibility and pricing advantages to win customers. Meanwhile, Intel is struggling to keep pace, giving AMD a window to establish a strong #2 position in the AI compute race. If AMD can successfully ramp its MI350 and MI400 chips while building ROCm adoption among developers, it may cement its status as a long-term leader in enterprise AI infrastructure. Long-term outlook: Can AMD stock hit $200? The recent rally has reignited discussions about whether AMD stock can break past the $200 mark in the next 12 months. While the current valuation is rich, multiple tailwinds support a long-term bullish case: Strong AI demand from enterprise and cloud customers Increasing adoption of MI355X and future MI400 chips Margin expansion driven by high ASPs in AI GPU sales Favorable comparisons against Intel's delayed offerings Growing analyst support and upward price target revisions That said, investors should remain cautious. The stock is priced for perfection, and any stumble in earnings, product delays, or macro pressures could trigger a pullback. Investor strategy: How to approach AMD ahead of earnings For those considering a position in AMD, the strategy largely depends on risk tolerance and investment horizon. Long-term investors may view current levels as a justified entry, betting on AMD's multi-year growth trajectory in AI. Short-term traders might wait for earnings results on August 5 to confirm momentum before entering or rebalancing positions. Value-conscious investors may look for a dip toward $130–$135 as a better risk-reward zone, especially if valuation concerns spark a short-term correction. AMD is now a serious contender in AI race AMD's latest surge to a 52-week high showcases the market's growing confidence in its ability to compete in the AI and data center markets. With earnings approaching on August 5, investor focus will shift to whether the company can back up its valuation with solid results and forward guidance. If AMD delivers another quarter of strong revenue growth, margin expansion, and MI350 adoption, it could very well cement its path toward $200+, redefining its role as a key AI infrastructure player. For now, all eyes are on AMD as it gears up for one of the most anticipated earnings seasons in recent tech history. FAQs: Q1: Why is AMD stock rising so fast? AMD stock is rising due to strong AI chip demand, analyst upgrades, and solid earnings momentum. Q2: What is AMD's next big AI product? AMD's next AI product is the MI400 series, expected to challenge Nvidia in 2026.
Yahoo
6 days ago
- Business
- Yahoo
Bernstein Lifts AMD Price Target to $140—But Still Holds Rating
Advanced Micro Devices, Inc. (NASDAQ:) is one of the . On July 21, Bernstein SocGen Group analyst Stacy Rasgon raised the price target on the stock to $140.00 (from $95.00) while maintaining a 'Hold' rating. Despite the hold rating, Rasgon has highlighted several positive catalysts working in favour of the stock. In particular, the analyst noted that the lifted ban on AI chip sales to China, upcoming MI350 product launch, and gaming recovery have been good for the company. This is why Rasgon updated his estimates for AMD earnings, which includes Q2 adjusted EPS of 49 cents on revenue of $7.52 billion, as compared to a prior estimate of 47 cents and $7.4 billion. The analyst also updated Q3 estimates, projecting $8.43 billion in revenue and $1.20 in earnings per share. He also updated his full-year 2025 estimate to $ $32.0 billion in revenue and $3.89 earnings per share. An experienced financial analyst pouring over financial statements and market data. Regardless, the firm still remains cautious due to high valuation and expected risk of client channel flush and tariff pull-forward reversal. Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
