AMD’s Strong Performance and Growth Prospects Justify Buy Rating Despite Challenges

Analyst Christopher Rolland from Susquehanna reiterated a Buy rating on Advanced Micro Devices (AMD – Research Report) and keeping the price target at $135.00.

Christopher Rolland has given his Buy rating due to a combination of factors including AMD’s strong performance in the Client and Gaming segments, which exceeded expectations. The company’s Data Center segment also performed well, driven by the adoption of the MI300 series, which surpassed expectations. Despite the negative impact of China export restrictions on the MI308, AMD anticipates growth in GPU revenue in the latter half of the year with the ramp-up of the MI350 series.
Additionally, AMD’s roadmap remains robust with the MI400 on track for a 2026 launch and continued strength in server CPU share gains. The company’s Client segment saw record average selling prices, bolstered by high-end desktop and Ryzen laptop processors. While gaming outperformed expectations with the launch of the Radeon 9070 series, the overall results and guidance were better than anticipated, supporting the Buy rating despite some challenges in the Embedded segment and China revenue impacts.

In another report released today, UBS also maintained a Buy rating on the stock with a $150.00 price target.

Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMD in relation to earlier this year.