AMD's stock saw a 5% drop Tuesday amid a broader chip sector sell-off, despite fresh analyst enthusiasm following its recent AI-focused event. Mizuho raised its price target to $625 from $615, maintaining a Buy rating based on strong demand signals and new product launches.
The highlight was the MI455 Helios platform, AMD's full-stack AI rack system, securing up to 14 gigawatts of commitments from leading AI players like OpenAI, Microsoft, Meta, and Anthropic. This signals solid adoption as AMD pushes deeper into AI infrastructure, a market Mizuho now values at $2 trillion by 2030, including a $1.4 trillion AI accelerator segment and an expanded server CPU market.
New Product Launches and Strategic Partnerships
AMD’s 6th-generation EPYC CPUs, codenamed Venice, are in full production with cloud providers gearing up for Q4 rollouts. Another major announcement was a partnership with Cerebras to combine AMD’s Helios platform with Cerebras’ wafer-scale engine, aiming to deliver high-throughput AI inference solutions.
Other analysts joined the upward momentum: Stifel lifted its target to $635, Benchmark to $685, and Wedbush to $600, while Baird more than doubled its price target to $1,250. Despite this optimism, insiders have sold over $141 million in stock over the past three months, and AMD shares remain below their 12-month high of $584.73.
Wall Street consensus is still very positive with a Strong Buy rating and an average target of $570.69, implying around 15% upside from current prices. AMD’s latest earnings beat expectations with $10.25 billion in revenue, up nearly 38% year-over-year, reflecting the company’s growing influence in AI and cloud computing.
This material is for informational purposes only and should not be considered financial advice.
