Advanced Micro Devices is getting back into the spotlight as Bernstein has increased its price target to $140 from the previous level of $95. Although they maintained a neutral Market Perform rating, this significant increase indicates the growing confidence in the business recovery and growth of AMD. The update is happening as AMD gets the AI market in China back again, which had been locked out by trade curbs imposed by the United States. Bernstein also anticipates better quarterly performance, and Q3 2025 sales are projected at $8.43 billion and earnings at $1.20 per share. This compares to previous estimates and is also above the present consensus in the market.
This can be attributed mainly to the optimism of the MI350 product release and the increased presence of AMD in the AI, gaming, and data centers markets. The 21.7% increase in revenue of the company over the last 12 months is an indication of strength, and the full-year 2025 projections have improved to about $32 billion in revenue and nearly $4 in earnings per share. But it trades at a very high valuation at 114.7 times its price-earnings ratio. That casts doubts on the amount of upside left to be had in the short run.
More bullish are other analysts. HSBC increased its target to 200 and Mizuho to 175, because AMD will get back in China with its MI308-based chips and the diversification in its AI revenue. These developments indicate a larger market perspective wherein AMD can open up new billion-dollar growth opportunities. However, Bernstein is cautious. High investor expectations, pricing pressure, and potential volatility of trade policy are all risks that they are observing. Next to watch will be the August 5 earnings release of AMD. In the event that the company is able to meet or exceed expectations, faith in its growth story will likely increase.
At this point, AMD is a stock to monitor. It is at the epicenter of the AI competition and supported by great potential and a fast-changing market climate.
