Wall Street Upgrades AMD Stock on Rising AI Data Center Demand
Wall Street Upgrades AMD Stock on Rising AI Data Center Demand

Wall Street Upgrades AMD Stock on Rising AI Data Center Demand

News summary

Truist Securities has upgraded Advanced Micro Devices (AMD) from Hold to Buy, raising its price target to $213 from $173, reflecting a growing demand for AMD's technology among hyperscale data center customers deploying artificial intelligence applications. Industry feedback indicates a shift from AMD being a mere price alternative to Nvidia to forming genuine partnerships with large-scale AI customers. AMD reported robust Q2 fiscal 2025 results, with revenue hitting a record $7.69 billion and net income surging significantly year-over-year, while guiding for continued growth in key product lines such as MI355 accelerators and EPYC server chips. Analysts are optimistic about AMD's long-term growth, projecting earnings per share of $7.89 by 2027, supported by strength in AI GPUs and CPUs despite challenges like U.S.-China trade tensions and competition. The stock has responded positively with a nearly 2% rise following the upgrade, and the broader analyst community maintains an outperform rating with an average price target around $184. This marks AMD as a formidable competitor to Nvidia in the AI and data center markets, underpinning its increasing market presence and investor confidence.

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