Positive Outlook for AMD: AI Revenue Rebound and Strong Client Segment Performance Drive Buy Rating

In a report released yesterday, Tristan Gerra from Robert W. Baird reiterated a Buy rating on Advanced Micro Devices (AMD – Research Report), with a price target of $140.00.

Tristan Gerra has given his Buy rating due to a combination of factors influencing Advanced Micro Devices’ (AMD) performance. One of the key reasons is the anticipated rebound in AI revenue in the second half of the year, despite a significant decline in the second quarter due to the removal of Mi308. Gerra notes that AMD is expected to achieve AI revenue of $6 billion in 2025 and $8.5 billion in 2026, with the Mi350x on track for volume shipments in the latter half of 2025 and the Mi400 scheduled for 2026.
Additionally, AMD’s strong performance in the client segment, with significant share gains in both desktops and notebooks, contributes to the positive outlook. The company reported a robust first half, with first-quarter client revenue up nearly 70% year-over-year. Despite a slightly lower-than-expected gross margin in the first half, AMD’s overall financial results were strong, with first-quarter non-GAAP EPS exceeding consensus estimates and revenue surpassing the high end of the guidance range.

Gerra covers the Technology sector, focusing on stocks such as Intel, ON Semiconductor, and Knowles. According to TipRanks, Gerra has an average return of 4.0% and a 45.11% success rate on recommended stocks.

In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $117.00 price target.