AMD Stock Price Target Raised by Top Analyst Ahead of Q2 Earnings

Business Insider

5 days ago

Bank of America Securities analyst Vivek Arya raised the price target on Advanced Micro Devices (AMD) stock from $175 to $200, while maintaining his 'Buy' rating. The revised price target reflects a 12.7% upside potential from current levels. Arya views AMD as well-positioned to capitalize on the artificial intelligence (AI)-driven demand and data center growth, which will deliver strong revenue and profit gains over the next few years.
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AMD is scheduled to report its second-quarter fiscal 2025 results after the market closes on August 5. Wall Street expects AMD to report adjusted earnings per share of $0.48 on sales of $7.41 billion.
Arya is a five-star analyst on TipRanks, ranking #102 out of the 9,927 analysts tracked. He boasts a 64% success rate and an average return per rating of 19.20%.
Why Is BofA Optimistic About AMD?
Arya remains highly optimistic about AMD's competitive edge in the CPU (central processing unit) market. The analyst forecasts the company's overall CPU market share to jump more than 30% by 2026, significantly higher than the below 20% share recorded in 2023.
Moreover, Arya highlighted the positive momentum in AMD's GPU (graphics processing unit) market share following easing trade negotiations with China. Arya expects AMD to capture 4% to 5% of the overall AI GPU market. AMD is expected to resume shipments of its AI GPUs to China in the second half of 2025. The analyst expects that the resumed sales will add roughly $700 million to $1 billion in revenue in 2025 and $1.5 billion to $2 billion in 2026. Arya is also encouraged by the strong pricing of AMD's current-generation MI355X GPUs at over $20,000 versus consensus estimates of $17,000.
Additionally, Arya pointed to AMD's premium pricing position against rival Intel (INTC). He noted that AMD commands roughly 17% more pricing in the Personal Computer (PC) market and 64% higher in the server chips market compared to Intel.
Finally, Arya expects AMD to report above-consensus Q2 sales of $7.5 billion. For Q3, Arya's forecasted sales of $8.5 billion exceed the consensus estimate of $8.3 billion. Similarly, for the full year 2025, BofA projects sales above $33 billion and adjusted earnings above $4.10 per share, both ahead of analyst consensus.
Is AMD a Good Buy Now?
Not all analysts share the same enthusiasm about AMD's long-term outlook as Arya. AMD stock touched a new 52-week high of $182.31 yesterday, on news of the resumption of AI GPU sales to China and BofA's bullish outlook. Year-to-date, AMD stock has already gained 46.9%.
On TipRanks, AMD stock has a Moderate Buy consensus rating based on 26 Buys and 10 Hold ratings. The average AMD price target of $149.45 implies 15.8% downside potential from current levels.