In a report released today, Yik Ban Chong from Phillip Securities maintained a Buy rating on Advanced Micro Devices (AMD – Research Report), with a price target of $120.00.
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Yik Ban Chong has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ strong growth potential despite challenges. The company’s revenue and profit figures for the first quarter of 2025 were in line with expectations, driven by robust sales of MI300X chips, EPYC server CPUs, and Ryzen CPUs, which resulted in a significant year-over-year revenue increase. AMD’s client PC segment has shown impressive growth, maintaining over 50% year-over-year revenue growth for four consecutive quarters, largely due to market share gains in AI PC chips and record average selling prices for client CPUs.
Despite potential revenue impacts from recent U.S. export controls on AI chips to China, AMD’s guidance for the second quarter of 2025 remains strong, with expected revenue growth of 27% year-over-year. The company is poised to benefit from increased demand for its EPYC CPUs and MI325X GPUs, particularly as major tech companies like Google, Microsoft, Amazon, and Meta plan significant capital expenditures to expand their AI data centers. Additionally, AMD’s gaming and embedded segments are showing signs of stabilization, with management expecting a return to growth in the latter half of 2025. These factors collectively support a positive outlook for AMD, justifying the Buy rating.