Advanced Micro Devices (AMD) is scheduled to report its second-quarter earnings on August 5. Wall Street expects the chipmaker to report EPS of $0.49 on revenues of $7.41 billion in Q2. Ahead of the results, Christopher Danely, a 5-star analyst at Citi, raised his price target on AMD to $145, up from $120. While he kept a Neutral rating on the stock, Danely believes improving industry trends could help AMD and other chipmakers in the months ahead.
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Danely ranks 610 out of more than 9,700 analysts on TipRanks. He has a success rate of 66%, with an average return per rating of 11.40% over a one-year period.
Danely’s Opinion about AMD Stock
Danely increased his price target on the stock as he believes the company could benefit from a stronger market for chips. He raised his estimates for AMD, noting that demand remains solid and companies are starting to rebuild inventory. While the Neutral rating suggests caution, the new price target shows Danely still sees some upside potential for AMD, especially if the company’s Q2 numbers beat estimates.
Overall, Citi’s view points to a slow but steady rebound in semiconductors, with AMD riding the wave, even if it’s not leading it.
Why Citi Sees a Chip Recovery
Citi had earlier expected new tariffs and global risks to weigh on chip sales this year. But according to Danely, those fears haven’t played out. Instead, he sees signs of a recovery. Companies are restocking their inventories, and demand for chips in certain areas is starting to bounce back.
Is AMD Stock a Buy or Sell Now?
According to TipRanks, AMD stock has a Moderate Buy consensus rating based on 24 Buys and 10 Holds. The average AMD stock price target of $133.62 indicates that the stock is fully valued at current levels.
