AMD stock on track for $7-8B in AI revenue this year, KeyBanc says
Investing.com
Published Jul 08, 2025 08:46AM ET
Investing.com - KeyBanc Capital Markets reiterated its Sector Weight rating on Advanced Micro Devices (NASDAQ:AMD) on Tuesday, citing positive takeaways from its Asia research. The semiconductor giant, currently valued at $218.57 billion, has demonstrated strong momentum with revenue reaching $27.75 billion in the last twelve months, according to InvestingPro data.
Strong demand for AMD's next-generation MI355 AI GPU is putting the company on pace to reach $7 billion to $8 billion in AI revenues this year, according to KeyBanc. The firm raised its AI GPU estimates for 2025 to $7 billion based on these findings.
Server demand in the near term remains robust for AMD, with the latest cloud tracker results showing a meaningful uptick in Turin deployments, the research note indicated.
KeyBanc also observed that Intel (NASDAQ:INTC)'s aggressive price cuts on its Lunar Lake processors are having limited impacts on AMD's PC market share, providing another positive signal for the chipmaker.
Despite these encouraging developments, KeyBanc maintained its Sector Weight rating on AMD, noting that "the gap with NVDA remains wide" and that the firm awaits "further proof points that demonstrate AMD's ability to close the gap more meaningfully." The stock currently trades at a P/E ratio of 98.39, reflecting high growth expectations, while maintaining a "GOOD" overall financial health score according to InvestingPro 's comprehensive analysis.
In other recent news, Advanced Micro Devices (AMD) has been in the spotlight with several notable developments. Mizuho raised its price target for AMD to $152, citing strong demand for AI accelerators and projecting revenue of $7.40 billion for the June quarter, aligning with consensus estimates. Melius Research upgraded AMD from Hold to Buy, increasing its price target to $211, based on optimistic AI growth prospects and potential earnings per share exceeding $8 within two years. Piper Sandler also raised its price target to $140, highlighting AMD's recent product launches, including the Helios rack, as pivotal for growth in its graphics processing unit segment. Meanwhile, Truist Securities maintained a Hold rating with a $111 price target, noting ongoing debates about AMD's datacenter GPU business and a significant inventory build in the channel. Additionally, AMD has entered a strategic partnership with Microsoft (NASDAQ:MSFT) to co-develop silicon technology for future Xbox consoles, aiming to enhance graphics capabilities and AI-powered experiences. These developments reflect AMD's active engagement in the competitive semiconductor market.
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