AMD stock price target raised to $152 from $135 at Mizuho on AI accelerator demand
Investing.com
Published Jul 02, 2025 04:55PM ET
Investing.com - Mizuho has raised its price target on AMD (NASDAQ:AMD) to $152 from $135 while maintaining an Outperform rating on the stock. The semiconductor giant, currently valued at $224 billion, has shown strong momentum with a 13% return over the past six months. According to InvestingPro analysis, AMD's current market price is well-aligned with its calculated Fair Value.
The firm adjusted its June quarter revenue estimate to $7.40 billion and earnings per share to $0.47, compared to the consensus estimate of $7.40 billion and $0.49 per share.
Mizuho maintained its fiscal year 2025 revenue projection at $32.0 billion while slightly lowering its EPS forecast to $3.90 from $4.02, with consensus estimates at $31.8 billion and $3.94, respectively.
The price target increase reflects a higher valuation multiple of 25.9x the firm's fiscal 2026 earnings estimate, up from the previous 18.6x multiple, as Mizuho anticipates "a slightly better MI355X ramp" in the second half of 2025.
Mizuho noted that demand for AI accelerators "remains strong" with many hyperscalers seeking alternative GPU suppliers, though software limitations continue to position AMD behind its key competitor NVIDIA (NASDAQ:NVDA).
In other recent news, Advanced Micro Devices (AMD) has been in the spotlight with several key developments. Melius Research upgraded AMD's stock rating from Hold to Buy, citing growth prospects in artificial intelligence and projecting earnings per share to exceed $8 within two years. Piper Sandler also raised its price target for AMD to $140, highlighting the importance of the Helios rack for AMD Instinct growth in the GPU sector. Meanwhile, TD Cowen maintained its Buy rating and noted AMD's strategic progress in AI, emphasizing the company's efforts to position itself as a viable alternative to NVIDIA.
Additionally, AMD has partnered with Microsoft (NASDAQ:MSFT)'s Xbox division to develop silicon technology for future gaming consoles, focusing on enhancing graphics and AI-powered experiences. Despite these advancements, Bernstein SocGen Group reiterated a Market Perform rating, pointing out that AMD's recent AI technology event lacked major new customer announcements. The event did, however, provide updates on upcoming GPUs and projected significant growth in the AI accelerator market. Overall, these developments reflect AMD's ongoing efforts to strengthen its position in the competitive semiconductor and AI markets.
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