Advanced Micro Devices (NASDAQ:AMD) analysts break down the Q2 financial results and highlight what could happen in the second half of the fiscal year.
The AMD Analysts:
- Goldman Sachs analyst James Schneider maintained a Neutral rating on AMD and raised the price target from $140 to $150.
- KeyBanc analyst John Vinh maintained a Sector Weight rating with no price target.
- Wedbush analyst Matt Bryson reiterated an Outperform rating and raised the price target from $170 to $190.
- Benchmark analyst Cody Acree reiterated a Buy rating and raised the price target from $170 to $210.
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Goldman Sachs on AMD: The company showed Datacenter GPU momentum, but questions remain regarding scale and operating leverage, Schneider said in a new investor note.
"We expect the stock to be range bound following a strong quarter with guidance that was above the Street, offset by high expectations and stock outperformance heading into the quarter," Schneider said.
The analyst said the AMD stock price could hinge on the level of Data Center GPU revenue in 2026.
"Based on our latest estimates, we view ~$10-11 billion as realistic – but we think investor expectations are well ahead of this level."
Schneider remains Neutral on AMD with questions on the company's market share in the PC and enterprise server segments.
KeyBanc on AMD: Strong second quarter results and a path to ramp up MI355 were highlights from the company's earnings for Vinh.
"We're encouraged by these results and the strong ramp of MI355," Vinh said.
The analyst said AMD is seeing strong high-end desktop demand, gaining market share in premium segments and seeing growing commercial momentum.
"We are firm believers in AMD's revitalized product road map strategy, and product traction is compelling."
The analyst said that expectations for AMD gaining market share could be too high and provides "substantial risk" to the share price, based on a valuation level that is well above that of its peers.
Wedbush on AMD: Second quarter results were good, but AMD now has lofty expectations from the company and investors, Bryson said in a new investor note.
"The Q3 outlook was better than expected on substantial Q/Q DC GPU growth expectations, even without assuming any MI308 export licenses are granted," Bryson said.
The analyst stated that the guidance positions AMD to exceed prior analyst estimates in the coming quarters.
China remains a wild card, with guidance not including future revenue for the country.
While China could provide more upside in the future, the analyst said strength in client and server compute markets can help offset weaker GPU results.
"Our view is rather that AMD's increased guide should be viewed as a positive outcome, particularly given the likelihood sales to China do eventually resume."
Benchmark on AMD: Strong data center and client market share gains highlight the Q2 strength, Acree said in a new investor note.
The analyst said the ramp of new AI GPUs bodes well for the second half of the fiscal year.
"For Q3, AMD's growth is expected to be driven by a strong double-digit increase in the Data Center, particularly in MI350 ramps," Acree said.
With the stock trading down after hours on Tuesday, the analyst said the move could be investors taking profits after shares had risen 26% in the last month and 56% over the last six months.
Acree said stronger-than-expected results, market share gains, and the ramp of new AI GPUs should be top storylines to follow for AMD going forward.
"We see a lot about AMD for investors to be encouraged and excited about."
AMD Price Action: AMD stock is down 8.1% to $160.28 on Wednesday versus a 52-week trading range of $76.48 to $182.50. AMD stock is up 32.9% year-to-date in 2025.
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