AMD Market Position Is 'The Best In The Company's History,' Says Analyst

Advanced Micro Devices, Inc. AMD reported better-than-expected quarterly results on Tuesday in what CEO Lisa Su called "an outstanding start to 2025." Analysts are weighing in on the report. 

Key Takeaways: Benchmark analyst Cody Acree emphasized AMD's market share gains as one of the strongest in computing markets and recommended using the stock's near-term price weakness as a buying opportunity.

• Benchmark reiterated its Buy rating and $170 price target. 

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Rosenblatt analyst Kevin Cassidy highlighted the company's gross margin expansion to 54% and said he expects strong sequential growth in the Client and Gaming segments. 

"In our view, AMD’s market position is the best in the company’s history. We continue recommending the shares," Cassidy said. 

• Rosenblatt maintained its Buy rating and $200 price target. 

Morgan Stanley analyst Joseph Moore predicted strong PC and server gains, but remained cautious on AI due to competitive market pressures. The analyst also cut AMD's multiple to 22x due to sector-wide contraction.

• Morgan Stanley maintained an Equal-Weight rating on AMD, but lowered its price target from $137 to $121. 

Wedbush analyst Matt Bryson highlighted data center revenue growth of 57% year-over-year and noted that strong traditional compute and gaming helped to offset weaker GPU sales in the quarter. The analyst raised the price target on AMD stock despite headwinds from the loss of China's data center GPU market. 

• Wedbush maintained its Outperform rating and raised its price target from $115 to $120. 

BofA Securities analyst Vivek Arya upgraded AMD from a Neutral to a Buy and highlighted "multiple growth cylinders" and continued market share gains in PC/server CPU against Intel. Arya also raised EPS estimates by 4% for fiscal 2025 and 6% for fiscal 2026, lifting them to $3.80 and $5.60, respectively.

• BofA upgraded AMD from Neutral to Buy and raised its price target from $105 to $120. 

JPMorgan analyst Harlan Sur reduced 2025's EPS to from $4.30 to $4 due to China-related inventory write-down and warned that AMD will have to invest heavily in R&D in order to keep pace with market leaders. 

• JPMorgan maintained a Neutral rating on AMD shares and lowered its price target from $130 to $120. 

AMD Stock Price Action: Advanced Micro Devices shares were down 1.10% at $97.61 at the time of publication Wednesday, according to Benzinga Pro. 

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