Analysts from investment firm Cantor, led by five-star analyst CJ Muse, have reduced their price target for chipmaker Advanced Micro Devices (AMD) to $135 per share but maintained an Overweight rating. This move comes ahead of AMD’s earnings report on Tuesday. The analysts expect a modest beat for the December quarter, followed by a modest miss for the March quarter guidance.
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Looking ahead to 2025, the analysts believe that the focus will shift to AMD’s Data Center graphics processing unit (GPU) revenues, specifically the MI300X/MI325X. Interestingly, they predict $7 billion in revenue for the year, which is below consensus estimates. However, they don’t expect AMD to provide a full-year target.
In addition, the analysts forecast low to mid-single-digit percentage growth in personal computer units and a recovery in the traditional server market. Despite this, they anticipate a “meaningful reset” in AMD’s revenue and earnings per share (EPS) due to slower growth in DC Accelerators and increased investments in research and development. As a result, they predict 2025 revenues to come in at $29 billion with an EPS figure of $4.00.
Is AMD a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on AMD stock based on 14 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 35% decline in its share price over the past year, the average AMD price target of $161.55 per share implies 41.9% upside potential.
