Advanced Micro Devices (NASDAQ: AMD) has received a significant boost from Wall Street after Truist Securities upgraded the stock to a ‘Buy’ rating from ‘Hold’.
The firm’s analyst William Stein raised the stock’s price target to $213 from $173, implying a potential 30% increase from the last market close of $163. Notably, AMD has already gained more than 35% year-to-date.
Drivers of AMD stock upgrade
In issuing the upgrade, Stein noted that industry feedback suggests hyperscale customers, who were previously testing AMD’s chips as an alternative to Nvidia (NASDAQ: NVDA), are now showing a stronger commitment to adopting AMD technology at scale.
“Over the last month or so, contacts have increasingly noted that hyperscalers are working with AMD in a partnership manner, expressing true interest in deploying AMD at scale,” Stein said.
Truist also revised its financial outlook for the company, projecting calendar year 2027 earnings per share at $7.89. The raised price target reflects to growing optimism around AMD’s long-term growth as it expands its role in AI-driven computing.
The upgrade comes as the semiconductor maker reported mixed results for the second quarter of Fiscal 2025. Revenue hit a record $7.69 billion, up 32% year-over-year.
On a GAAP basis, net income surged to $872 million, or $0.54 per diluted share, compared with $265 million, or $0.16 per share, a year earlier.
Looking ahead, AMD guided third-quarter revenue to about $8.7 billion, plus or minus $300 million, supported by expected growth in MI355 accelerators, EPYC server chips, and client products.
Wall Street bullish on Nvidia stock
In general, AMD stock has benefited from optimism around its AI GPU prospects and ongoing strength in the CPU market. Despite lingering concerns over U.S.-China trade tensions, rising costs, and stiff competition, analysts remain largely bullish.
At the same time, other Wall Street analysts also see strength ahead for the technology giant. For instance, TD Cowen’s Joshua Buchalter lifted his price target to $195, pointing to a ramp in MI355 sales and expected momentum in Instinct chips later in the year.
Mizuho’s Vijay Rakesh raised his target to $205, forecasting gains from renewed MI308 sales in China and upside from Microsoft’s robust cloud spending.
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