Chipmaker Advanced Micro Devices (AMD) reported upbeat results for the third quarter of 2025 and issued a solid revenue outlook for the fourth quarter, driven by strength in the company’s data center and gaming segments as well as artificial intelligence (AI)-led demand. However, AMD stock was down 5.3% in Wednesday’s pre-market trading, as optimism about strong results seemed already priced into the shares. Nonetheless, top analysts at Baird and Stifel raised their price targets for AMD stock, reflecting their optimism about the AI chip company’s growth potential.
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Stifel Analyst Boosts AMD Stock Price Target
Stifel analyst Ruben Roy increased the price target for Advanced Micro Devices stock to $280 from $240 and reiterated a Buy rating. Following the solid Q3 print and fourth-quarter outlook, the 5-star analyst noted that the near-term outperformance is being supported more by growing demand for server CPUs and continued market share gains in client CPUs than by data center AI GPUs. He expects AMD’s data center AI GPUs to generate revenue in the range of $6 billion to $6.5 billion in 2025, up from his prior estimate of $5 billion.
Roy remains confident about AMD’s strong execution, as the chipmaker approaches production shipments of the MI400/450 chips and the Helios rack in 2026. Moreover, deals with OpenAI (PC:OPAIQ) and Oracle’s (ORCL) OCI (Oracle Cloud Infrastructure) have provided visibility into the longer-term prospects of AMD’s data center business. Roy now awaits further insights on AMD’s technology roadmap, customer product adoption, and total addressable market (TAM) at the company’s 2025 Financial Analyst Day on November 11.
Top Baird Analyst Sees More Upside Potential in AMD Stock
Likewise, Baird analyst Tristan Gerra raised the price target for AMD stock to $300 from $240 and reaffirmed a Buy rating. The 5-star analyst looks forward to the company’s updates at next week’s Financial Analyst Day. Gerra expects announcements about higher AI TAM projections at the event and the MI450 ramp in the second half of 2026 to serve as potential catalysts for AMD stock.
The top-rated analyst continues to expect AMD to deliver earnings per share (EPS) of $12 in 2028 and sees solid upside potential in the stock, though he cautioned that “focus will be on execution.” It is worth noting that Gerra’s 2028 EPS forecast does not yet factor in the full contribution from the OpenAI ramp.
Is AMD Stock a Buy or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 29 Buys and 10 Holds. The average AMD stock price target of $255.77 indicates 2.3% upside potential from current levels.
These ratings/price targets could be revised further as more analysts react to AMD’s Q3 results.
