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Advanced Micro Devices (AMD) has captured investors’ attention once again as optimism builds around its potential in the booming artificial intelligence (AI) and data center markets. With shares currently trading around $179, one of the most bullish voices on Wall Street, UBS, has lifted its 12-month price target to $210 from $150 while maintaining a “Buy” rating.
Some analysts believe AMD’s expanding AI chip lineup and strengthening position in server solutions could drive significant upside. However, others remain cautious, pointing to stiff competition, macroeconomic uncertainty, and high expectations already priced into the stock. As excitement grows, is AMD stock poised to maintain its momentum and hit the $210 mark in 2025?
About Advanced Micro Devices Stock
Based in Santa Clara, California, Advanced Micro Devices is a fabless semiconductor firm known for high-performance computing solutions including its Ryzen, EPYC, Threadripper, Radeon, and Instinct product lines. Since its founding, AMD has evolved into a major player in CPUs, GPUs, adaptive SoCs, FPGAs, and AI accelerators. AMD’s market capitalization currently stands at around $291 billion, placing it among the top semiconductor firms globally.
AMD has delivered a remarkable price performance through 2025, signaling a powerful comeback. As of the last session, AMD closed at $179.51, after hitting its 52‑week high of $182.31 on July 29, marking an impressive recovery from its April low of $76.48. Its year‑to‑date (YTD) gains stand at 49%, catalyzed by strong AI and data-center demand, particularly surrounding the Instinct MI350/MI355X GPU series and analyst upgrades.
AMD stock is currently priced at 56 times forward earnings, trading at a lofty valuation compared to the sector median and its historical average.
AMD Delivered Robust Q1 Performance
AMD reported its first-quarter 2025 earnings on May 6, delivering a strong start to the year with revenue of $7.4 billion, up 36% year-over-year (YOY), and surpassing expectations. On a non‑GAAP basis, net income rose 55% YOY to $1.6 billion, with EPS of $0.96, also marking a 55% increase. Gross margin expanded to 54%, while operating income on a non-GAAP basis rose 57% to reach $1.8 billion, translating into an operating margin of 24%.
The data center segment stood out, generating $3.7 billion in revenue, up 57% YOY, driven by strong demand for EPYC and Instinct. The client and gaming segment delivered $2.9 billion, rising 28% from the year-ago quarter, with client processor demand particularly robust. Finally, the embedded segment experienced a modest 3% decline to $823 million as demand remained mixed.
AMD further forecast a revenue impact for the year due to the export license requirement, which could hamper overall results. Yet, management issued optimistic guidance for Q2, which is about to be reported on Tuesday, Aug. 5 after the market close. AMD expects Q2 revenue of $7.4 billion, plus or minus $300 million.
Analysts covering AMD predict its EPS to rise by 18% YOY to $3.09 in fiscal 2025, before improving by around 57% annually to reach $4.86 in fiscal 2026.
What Do Analysts Expect for AMD Stock?
UBS analyst Timothy Arcuri raised his price target from $150 to $210 recently, maintaining a “Buy” rating, citing growing demand in both PC and data center markets as well as stronger investor sentiment. HSBC also upgraded AMD from “Hold” to “Buy,” doubling its price target to $200. The upgrade was prompted by strong performance from the new Instinct MI350 series, which analysts believe rivals Nvidia’s (NVDA) Blackwell GPUs and could drive upside.
However, some analysts are still preferring the sidelines. Goldman Sachs initiated coverage of AMD earlier this month, assigning a “Neutral” rating and a $140 price target. While it acknowledged the company’s solid execution and substantial gains in server and PC CPU market share, the firm cautioned that AMD’s server CPU share gains may decelerate due to rising ARM penetration, and that merchant GPU market share may remain limited amid intense competition.
AMD stock has a consensus “Moderate Buy” rating overall. Out of 44 analysts covering the semiconductor stock, 28 recommend a “Strong Buy,” two give a “Moderate Buy,” 13 analysts stay cautious with a “Hold” rating, and one analyst gives a “Strong Sell” rating.
AMD has already surpassed its average analyst price target of $152.42. However, the Street-high target price of $223 recently set by Arete Research suggests as much as 24% upside ahead.
