Analyst Christopher Danely from Citi reiterated a Hold rating on Advanced Micro Devices and keeping the price target at $180.00.
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Christopher Danely has given his Hold rating due to a combination of factors. One of the key reasons is the recent agreement by AMD to give a 15% share of its AI GPU sales in China to the U.S. government in exchange for export licenses. Danely views this agreement as not significantly impactful, given the low margins of these products and the potential for these AI GPUs to face future bans in China.
Additionally, while the MI355 and MI400 products are expected to be the primary drivers of earnings per share and stock performance, the overall growth projections for AMD’s AI business are promising, with anticipated growth rates of 23% year-over-year in 2025 and 58% in 2026. Despite these growth prospects, Danely maintains a Neutral rating due to the high valuation of the stock, which is slightly above its historical average, reflecting both the high growth potential and the expensive valuation.
In another report released yesterday, Bernstein also maintained a Hold rating on the stock with a $140.00 price target.
AMD’s price has also changed dramatically for the past six months – from $111.100 to $172.280, which is a 55.07% increase.