Bernstein has raised its price target on Advanced Micro Devices (NASDAQ: AMD) to $140 from $95, citing the company’s growing role in the artificial intelligence hardware race.
While the new target is below AMD’s current share price of $153.48, it represents a 47.4% increase from Bernstein’s previous projection. As of press time, the stock was down 2.2%, though it remains up 27% year-to-date.
Despite the revised target, Bernstein analyst Stacy Rasgon maintained a ‘Market Perform’ rating, pointing to elevated investor expectations and potential risks in the client segment.
Looking ahead, Rasgon highlighted the near-term boost from resurgent AI demand in China and the anticipated launch of the MI350 accelerator, which could drive earnings momentum in the coming quarters.
Bernstein now forecasts Q2 2025 revenue and earnings at $7.52 billion and $0.49 per share, slightly above prior projections and broadly in line with consensus.
For Q3 2025, the firm expects $8.43 billion in revenue and $1.20 EPS, beating both previous estimates and Wall Street expectations. Full-year 2025 estimates have been raised to $32 billion in revenue and $3.89 per share in EPS.
Ability to compete with Nvidia
Furthermore, Rasgon views the upcoming MI450, AMD’s first rack-scale AI solution, as a key long-term catalyst. This chip is seen as a potential game-changer in closing the performance gap with Nvidia (NASDAQ: NVDA), fueling investor optimism around AMD’s structural AI growth prospects.
However, Rasgon also warned of risks, including a potential correction in client channel behavior and the unwinding of tariff-driven demand pull-forwards.
Beyond Bernstein’s outlook, broader Wall Street sentiment remains cautious. A consensus of 35 analysts on TipRanks rates AMD as a ‘Moderate Buy’ with 25 recommending buying, 10 suggest holding, and none recommend selling.
The analysts’ average 12-month price target is $145.90, implying a 4.78% downside from current levels, with individual targets ranging from $110 to $200.
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