TLDR
- Mizuho raised its AMD price target to $625 from $615, reiterating a Buy rating after AMD’s Advancing AI event.
- AMD has rallied 131% year-to-date despite a recent pullback in chip stocks.
- MI455 (Helios) commitments of up to 14 GW secured from OpenAI, Anthropic, Microsoft, and Meta.
- AMD’s 6th-Gen EPYC CPUs (Venice) are now in full production, with cloud rollouts expected in Q4.
- Wall Street holds a Strong Buy consensus with an average price target of $570.69.
AMD stock opened at $494.95 on Tuesday, down around 5% on the day, caught up in a broader chip sector sell-off. That pullback came despite a wave of positive analyst commentary following AMD’s Advancing AI event last week.
Advanced Micro Devices, Inc., AMD
Mizuho analyst Vijay Rakesh reiterated his Buy rating and lifted his price target to $625 from $615. He pointed to upside from two key product launches: Helios and Venice.
Rakesh ranks No. 4 out of more than 12,390 analysts tracked by TipRanks, with a 68% success rate and an average return of 72.80% per rating over one year.
The Helios platform is AMD’s full-stack rack-scale AI system. Rakesh noted up to 14 GW in MI455 commitments from OpenAI, Anthropic, Microsoft, and Meta — a strong demand signal heading into the second half of the year.
AMD also confirmed that its 6th-Gen EPYC CPUs, codenamed Venice, are now in full production. Major cloud providers and OEMs are expected to begin rollouts in the December quarter.
Cerebras Partnership and TAM Expansion
One of the more interesting developments from the event was AMD’s partnership with Cerebras. The two companies are combining AMD’s Helios rackscale offering with Cerebras‘ wafer-scale engine to deliver a high-throughput AI inference solution.
Rakesh also raised AMD’s total addressable market estimate to $2 trillion by 2030. That includes $1.4 trillion from AI accelerators and a server CPU TAM that jumped to $220 billion from a prior estimate of $120 billion.
Other analysts added to the positive tone. Stifel raised its target to $635, Benchmark lifted to $685, and Wedbush moved to $600. Baird reportedly doubled its target to $1,250.
Wall Street’s overall consensus sits at Strong Buy — 28 Buys versus eight Holds — with an average price target of $570.69, implying around 15% upside from current levels.
Insider Sales and Sector Pressure
Not everything is pointing up. Insiders have sold 310,310 shares worth roughly $141 million over the past 90 days, with no open-market purchases recorded. Insiders own just 0.50% of the stock.
AMD’s 12-month high is $584.73. The stock currently trades well below that, with the 50-day moving average at $514.08 and the 200-day at $343.51.
The stock’s last earnings report came on May 5th. AMD posted EPS of $1.37, beating estimates of $1.29, on revenue of $10.25 billion — up 37.8% year-over-year and above the $9.90 billion consensus.
Institutional investors own 71.34% of AMD stock. Empowered Funds LLC increased its position by 37.1% in Q1, bringing its total holding to 260,777 shares valued at $53 million.
AMD’s next earnings report will be a key test for whether AI demand, supply availability, and forward guidance can hold up against a premium valuation — the stock trades at a price-to-earnings ratio of 162.28 with a market cap above $800 billion.
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