Advanced Micro Devices’ (AMD) progress in the artificial intelligence (AI) space has led Top-rated analysts to raise price targets as the company positions itself for long-term growth. Mizuho analyst Vijay Rakesh recently boosted AMD’s price target to $135 from $117, maintaining a Buy rating. Similarly, Barclays analyst Tom O’Malley raised the price target on AMD stock to $130 from $110.
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It must be noted that Rakesh is optimistic about the company’s AI-driven tailwinds, such as AMD’s $10 billion Humain partnership, which is expected to drive adoption across enterprise applications. Also, the company’s MI355x chips, set to launch in the second half of 2025, will likely bolster AMD’s AI portfolio and help offset headwinds from the MI308 China ban.
AMD’s Big AI Moves
AMD has recently made big moves in AI, expanding its presence with new hardware, software, and strategic deals. It launched Ryzen AI Software 1.4, which makes AI models work better and is easier to use for developers. Also, AMD introduced MI325X AI chips, which can handle high AI workloads and compete with Nvidia’s (NVDA) Blackwell chips.
Beyond hardware, AMD is growing its AI business through acquisitions and collaborations. The company acquired ZT Systems for $4.9 billion, to boost its data center AI, and Silo AI for $655 million to expand its AI research.
AMD’s AI strategy also includes partnerships with Google Cloud, Meta (META), and Microsoft (MSFT), adding its AI tech to major platforms. With these moves, AMD is positioning itself as a strong competitor in AI.
Is AMD a Buy or Sell Now?
Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 22 Buys and nine Holds assigned in the last three months. At $126.55, the average AMD’s price target implies an 8.01% upside potential.
