TD Cowen analyst Joshua Buchalter maintained a Buy rating on Advanced Micro Devices yesterday and set a price target of $195.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors that highlight AMD’s promising growth trajectory. The company’s recent performance showed a strong quarter, with significant contributions from its CPU and Gaming segments. Importantly, the anticipated ramp-up of the MI355 in the second half of 2025 is expected to alleviate investor concerns and gradually build confidence in AMD’s future offerings, particularly the MI400/Helios expected in 2026.
The company’s guidance for the third quarter indicates robust growth momentum, primarily driven by the Instinct franchise, despite the absence of MI308 in the projections. AMD’s ability to execute on this guidance is seen as crucial, as it serves as a key indicator of the company’s competitiveness in AI and rack-scale environments. Additionally, AMD’s strategic focus on expanding its server CPU market share, driven by increasing demand for AI applications, further supports the positive outlook. While operational expenses have impacted earnings, the company’s gross margins remain stable, indicating a strong underlying business performance.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $204.00 price target.