Latest news with #MI355X
Business Insider
4 days ago
- Business
- Business Insider
Is AMD Stock a Buy Ahead of Q2 Earnings? Here's Wall Street's Take
All eyes are on Advanced Micro Devices' (AMD) second-quarter earnings that are scheduled to be announced on August 5. AMD stock has rallied about 38% year-to-date, driven by strong Q1 results, encouraging updates at the Advancing AI event, lifting of chip export restrictions, and revived hopes for the company's prospects in the artificial intelligence (AI) chips market. Ahead of the results, Wall Street is cautiously optimistic on AMD stock. 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. Expectations from AMD's Q2 Earnings AMD delivered impressive first-quarter results, with its data center segment's revenue rising 57%. The company's overall revenue growth has been accelerating in recent quarters. Wall Street expects AMD to report earnings per share (EPS) of $0.48 for Q2 2025, reflecting a 30% year-over-year decline. Meanwhile, revenue is estimated to grow by 27% to $7.41 billion. Looking ahead, Advanced Micro Devices' latest Instinct MI350X and MI355X graphics processing units (GPUs), which compete with Nvidia's (NVDA) Blackwell platform, are expected to boost its AI revenue. Moreover, the upcoming MI400X AI accelerator is expected to drive AMD's top-line higher. Analysts' Views Ahead of AMD's Q2 Results Heading into the Q2 results, Erste Group analyst Stephan Lingnau upgraded AMD stock from Hold to Buy, noting that the company sees further growth in 2025 based on the growing demand for high-performance CPUs and GPUs in data center environments. The analyst expects AMD's operating margin to increase in the medium term and profit growth to accelerate significantly next year. Lingnau expects AMD stock to continue to rise, given the company's 'good growth prospects.' Meanwhile, Citi analyst Christopher Danely increased his price target for AMD stock to $165 from $145, while maintaining a Hold rating. The 5-star analyst expects AMD stock to move higher ahead of the Q2 earnings report, driven by improving sentiment and the company's strong positioning in AI-related growth. That said, Danely is concerned that buy-side expectations for AMD may be too high. Is AMD Stock a Good Buy? Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 26 Buys and 10 Holds. The average AMD stock price target of $145.90 indicates a possible downside of 12.4% from current levels.
Business Insider
17-07-2025
- Business
- Business Insider
AMD Stock Rally Is ‘Empty Calories,' Says Citi's Top Analyst
Citi's top analyst, Christopher Danely, calls the recent rally in AMD stock (AMD) 'empty calories' because he believes the chip ban can be reinstated at any time. Yesterday, Advanced Micro Devices rallied 6.4% after President Donald Trump lifted the ban on export of artificial intelligence (AI) chips to China. The news also boosted shares of major semiconductor companies, including Nvidia (NVDA), which rose 4% to reach a new all-time high of $172.40. 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. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Danely has a 'Hold' rating on AMD stock and a price target of $145, which implies 6.8% downside potential from current levels. Danely ranks #588 out of 9,861 analysts tracked on TipRanks. He boasts a 66% success rate and an average return per rating of 11.40%. Here's Why Citi Is Skeptical About the AI Ban Reversal The easing of export restrictions means AMD can now resume shipments of its MI308 AI chips to China. The White House had previously imposed a ban on the export of advanced AI chips to China due to national security concerns. Notably, AMD was expected to take an $800 million hit from the ban, while Nvidia faced a larger $5.5 billion impact. However, the situation has changed following the easing of trade tensions between the U.S. and China. Danely has a rather skeptical view on the news. He noted that the resumption of MI308 chip sales to China is 'not sustainable' as they could be banned again. The U.S.-China trade relations remain fragile, and even a minor incident could prompt substantial policy shifts. Having said that, Danely believes that the Trump administration's $70 billion investment in Pennsylvania for AI and energy could be highly beneficial for chipmakers, including AMD, NVDA, Broadcom (AVGO), and Micron (MU). AMD Is Positioning as a Serious Rival to Nvidia For years, AMD has been seen as secondary to Nvidia, with the latter's advanced AI chips and GPUs (Graphics Processing Units) commanding global attention. However, AMD is rapidly advancing with its own chip innovations to compete more effectively with Nvidia. Recently, AMD launched its new line of MI350 AI chips, which are expected to be nearly 30% cheaper than Nvidia's comparable chips. Also, AMD's MI355X features high-bandwidth memory (HBM), which is reportedly three times that offered by Nvidia's Blackwell B200. Is AMD a Good Stock to Buy? Despite the current optimism surrounding Advanced Micro Devices, analysts remain divided about its long-term outlook. On TipRanks, AMD stock has a Moderate Buy consensus rating based on 25 Buys and 10 Hold ratings. Also, the average AMD price target of $135.97 implies 12.6% downside potential from current levels. Year-to-date, AMD stock has gained nearly 29%.
CNBC
16-07-2025
- Business
- CNBC
Wells Fargo raises AMD price target ahead of earnings, sees a nearly 20% gain for the stock
Advanced Micro Devices is a buy ahead of its upcoming earnings report and has room to grow in the next few months, Wells Fargo said on Wednesday. Analyst Aaron Rakers reiterated his overweight rating on the name and increased his price target to $185 from $120. That reflects 18.9% upside from Tuesday's close. "We think AMD will point to confidence in the trajectory to y/y AMD's datacenter GPU growth into 2H25," Rakers wrote in a Wednesday note, adding that such growth will be driven by the ramp up of MI355X chips , which began shipping last month. The analyst's forecast comes as the stock has surged more than 76% in the past three months, far surpassing the S & P 500's three-month gain of more than 18%. It's also risen more than 31% in the past six months. AMD 3M mountain AMD, 3-month Along with the company's datacenter growth trajectory, Rakers also anticipates that it'll highlight its roadmap execution, particularly when it comes to its fifth generation Epyc processors dubbed Turin. "We expect AMD results to highlight the company's position as a continued share gainer in server [central processing units] with a materializing ramp of Turin Zen 5-based EPYC CPUs + continued adoption of the Zen 4-based Genoa / Bergamo EPYC CPUs," the analyst also said. "We remain confident in AMD's strong roadmap execution," he continued, saying there should appear to be "ample room for enterprise driven growth." AMD is set to report earnings Aug. 5 after the bell. Rakers' bullish call is among the 37 total analysts that have a strong buy or buy-equivalent rating on the name, according to LSEG. Fifteen other analysts have stepped to the sidelines with a hold rating on the name. However, AMD has an average target of nearly $138, implying more than 11% downside potential.
Business Insider
16-07-2025
- Business
- Business Insider
‘Watch AMD Stock Surge,' Top BofA Analyst Boosts Price Target on Strong AI Momentum
Advanced Micro Devices (AMD) just got a bullish upgrade from BofA Securities analyst Vivek Arya, who raised his price target to $175 from $130, while maintaining a Buy rating. The five-star analyst shows confidence in AMD's AI strategy and its expanding footprint in the data center GPU market. 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. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. It must be noted that the upward revision came after AMD disclosed plans to resume shipments of its MI308 AI chips to China after receiving U.S. government approval. AMD stock was up 6% as investors were optimistic about this development. Analyst Sees Data Center Growth Arya estimates AMD can ship $400–$600 million in data center GPUs per quarter in the second half of 2025 and all of 2026. That adds about $1 billion to AMD's 2025 data center GPU forecast, and $2 billion to 2026 expectations, even with flat year-over-year growth due to local competition. Further, the analyst is optimistic about AMD's pricing power. The company's MI355X chips are selling for $20,000–$25,000, well above the $17,000 market assumption. Beyond data center GPUs, the analyst highlighted several other potential growth drivers for AMD, such as share gains in server CPUs against Intel (INTC), and expects growth from embedded systems and future MI400 chips, especially in government-backed projects. The new $175 price target is based on a 31x multiple of AMD's estimated 2026 earnings, up from 23x previously. Also, Arya noted this remains within AMD's historical valuation range of 13x to 39x, and close to its five-year median of 32x. Is AMD a Good Stock to Buy? On TipRanks, AMD stock has a Moderate Buy consensus rating based on 25 Buys and 10 Holds assigned in the last three months. The average AMD price target of $135.97 suggests an upside potential of 12.193% from its current price. In the past three months, shares of the company have gained about 65.6%.
Business Insider
05-07-2025
- Business
- Business Insider
AMD Stock Gets Price Target Hike from Top Analyst
Advanced Micro Devices (AMD) is making steady progress in the AI chip race, driven by strong GPU demand and rising data center sales. The stock is up 14% this year, with a 60% jump in the past three months alone. Building on this rally, Vijay Rakesh, a 5-star analyst of Mizuho Securities, recently raised his price target on AMD to $152 from $135, while keeping a Buy rating. The new target points to about 10% upside from current levels. He remains upbeat on AMD's AI potential, even though the company is still trying to catch up to market leader Nvidia (NVDA). Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Top Analyst Cuts Estimates but Remains Bullish on AI Ramp Rakesh, a Top-rated analyst, slightly revised his earnings forecast for AMD. While he kept his revenue estimates steady, he lowered his earnings projections due to margin pressures. For the upcoming June quarter, he still expects revenue of $7.40 billion, but cut his EPS estimate to $0.47 from $0.68, slightly below the Street's expectation of $0.49. Looking ahead to Fiscal 2025, he maintained his revenue forecast at $32 billion but trimmed his EPS estimate to $3.90 from $4.02. His 2026 earnings forecast also came down to $5.86 from $6.28, though it's still slightly above the Street's $5.81. For 2027, Rakesh raised his revenue projection slightly and kept EPS unchanged at $7.19, reflecting his confidence in AMD's long-term growth as its newer AI chips begin to scale. MI355X Ramp Could Be a Catalyst in Late 2025 Rakesh is optimistic about the potential of AMD's MI355X AI accelerator, which he expects to gain momentum in the second half of 2025. While Nvidia is still the dominant player in AI chips, Rakesh noted that many large cloud companies are starting to look for other options to reduce their reliance on a single supplier. This shift could benefit AMD going forward. That said, Rakesh also noted that software continues to be a weak spot for AMD, limiting its ability to compete head-on with Nvidia. He believes AMD still has work to do on the software front to fully unlock the value of its AI hardware. Is AMD a Buy or Sell Now? AMD stock price target of $132.76 indicates a possible downside of 3.73% from current levels.
