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4w ago

Analysts Raise AMD Price Targets as AI Chip Demand Grows

Wall Street firms foresee stronger-than-forecast Q2 results driven by potential MI350 price hikes alongside resumed China shipments boosting revenue outlook

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Overview

  • Bank of America raised its price target on AMD to $200 from $175 and UBS lifted its target to $210 while maintaining Buy ratings ahead of the August 5 earnings report.
  • BofA Securities expects the company to beat Q2 and Q3 revenue and earnings estimates on robust demand for its AI GPUs and CPUs.
  • Unconfirmed industry reports indicate AMD is considering a price increase for its Instinct MI350 accelerator from $15,000 to $25,000 in response to strong customer uptake.
  • CEO Lisa Su has asserted that the MI350 series outperforms and costs less than Nvidia’s Blackwell B200, strengthening AMD’s positioning in the AI accelerator market.
  • Investors are eyeing the August 5 earnings release for roughly $7.4 billion in revenue and $0.47 in EPS, with potential upside from resumed AI chip shipments to China.