Advanced Micro Devices has received an upgraded fair value estimate, rising from $246.01 to $276.76 per share as analysts express stronger confidence in the company’s growth outlook. This adjustment is accompanied by an upward revision in annual revenue forecasts, now expected to increase from 29.22% to 32.92%. The change reflects accelerating momentum in AI, data centers, and cloud partnerships. Stay tuned to discover how these updated projections could influence AMD’s evolving investment narrative and learn how to remain informed as new developments emerge.
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Analyst sentiment on Advanced Micro Devices (AMD) has been dynamic in recent weeks, with the majority of Street research expressing optimism, though some caution and skepticism have surfaced as well. The following summarizes the prevailing themes according to major Wall Street firms.
🐂 Bullish Takeaways
Multiple firms, including Raymond James, Roth Capital, Mizuho, Loop Capital, and BofA, view AMD as particularly well positioned to gain market share in artificial intelligence and data center markets. Raymond James, for instance, initiated coverage with an Outperform rating and a $377 price target, citing AMD’s competitive positioning relative to Nvidia in merchant GPUs and accelerators.
Analysts reward AMD’s strong execution and the company’s ability to forge significant partnerships, such as with OpenAI, which were seen as transformative for AMD’s growth narrative and AI roadmap. Piper Sandler and Stifel both highlighted the scale of these AI agreements. Stifel raised its price target to $240 after the OpenAI deal, and Melius Research revised upward to $300, seeing financial benefits as highly accretive.
Revenue and earnings growth momentum contribute to several price target increases, such as Mizuho’s $285 (from $275) and BofA’s maintained $300 alongside commentary on AMD’s product cadence and pathway to significant market share in AI.
Transparency and financial forecasting at recent analyst days have further boosted confidence. Loop Capital referenced AMD’s scenario analyses and potential to reach over $20 in non-GAAP EPS. Mizuho pointed out management guidance implying upside for 2028 to 2030 revenue.
Despite some caution, analysts like Morgan Stanley and Roth Capital increased their price targets (Morgan Stanley to $246 and Roth Capital to $250), reflecting confidence in AMD’s participation in large-scale AI deployments, though highlighting that execution remains critical.
Story Continues
🐻 Bearish Takeaways
Some analysts urge caution as elevated expectations may be largely priced in. Erste Group downgraded AMD to Hold from Buy, citing below-average operating margins and high valuation relative to sector peers.
A few firms raise concern about near-term risks, including competition from Nvidia and Arm licensees, continued margin sacrifices needed to gain data center share, and the reliance on the successful mass deployment of AI solutions. Loop Capital and Morgan Stanley both identified AMD’s new market assumptions and the competitive landscape as lingering uncertainties.
Seaport Research downgraded AMD to Neutral based on signs of slowing AI accelerator growth, seeing it as challenging for the company to meet what it considers over-high expectations for the near term.
In summary, while the Street trend remains predominantly positive and views AMD’s industry positioning and growth potential as compelling, some reservations around execution, valuations, and competitive threats continue to temper the most bullish outlooks.
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NasdaqGS:AMD Community Fair Values as at Nov 2025
The White House has urged Congress to reject the GAIN AI Act, which could impose new restrictions on AMD and Nvidia’s ability to sell advanced AI chips to China and select countries. This move could potentially impact international growth opportunities.
OpenAI has forged a multibillion-dollar partnership with AMD, agreeing to purchase 6 gigawatts of AMD’s MI450 chips over five years. This landmark deal positions AMD as a significant challenger to Nvidia’s dominance in the AI semiconductor market.
Oracle Cloud Infrastructure has announced plans to deploy 50,000 AMD AI chips starting in 2026. This development underscores the accelerating adoption of AMD’s GPU technology by major cloud service providers.
Saudi Arabian AI company, Humain, has entered into extensive data center collaborations with AMD. These initiatives aim to elevate the Kingdom’s capabilities in artificial intelligence and strengthen its global leadership ambitions in the sector.
The fair value estimate has increased from $246.01 to $276.76 per share, reflecting greater confidence in AMD’s future prospects.
The discount rate has risen slightly from 10.39% to 10.52%, indicating a marginally higher risk or hurdle rate in current forecasts.
The revenue growth forecast has been revised upward from 29.22% to 32.92% per year. This change is based on accelerated business momentum and stronger end-market demand.
The net profit margin is now expected to rise very modestly from 17.67% to 17.75%. This suggests only minor improvements in projected profitability.
The future P/E ratio has decreased from 47.56x to 46.19x. This suggests that, despite a higher fair value, profit growth is expected to outpace price appreciation.
A Narrative is more than just numbers; it tells the real story behind a company’s growth potential, combining expert forecasts, key risks, and fair value into one clear picture. Narratives on Simply Wall St distill complex financials into an accessible storyline, helping you judge when to buy or sell by comparing fair value with the actual price. The best part is that Narratives evolve in real time whenever new news or results are released, making them a dynamic tool trusted by millions on our Community page.
See for yourself why the original AMD Narrative is essential reading for anyone following the company:
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AMD.
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