AMD shares extend gains to rise as much as 5.3%

AMD shares extend gains to rise as much as 5.3%

Advanced Micro Devices (AMD) shares continued their upward trajectory on July 2, 2025, climbing as much as 5.3% following a series of positive developments and analyst upgrades. The stock's performance was driven by a strong first-quarter earnings report, strategic acquisitions, and the debut of its new Instinct MI350 Series GPUs, which have been praised for their competitive performance compared to Nvidia's (NVDA) offerings.

On May 6, AMD reported its fiscal 2025 first-quarter earnings, which exceeded Wall Street's expectations. Revenue jumped 36% year-over-year (YOY) to $7.4 billion, while adjusted earnings per share (EPS) increased 55% to $0.96. The company's Data Center segment, which includes high-performance Epyc processors and Instinct GPUs, was a key driver of growth, with revenue surging 57% YOY to $3.7 billion. The Client and Gaming segment also delivered solid growth, with revenue climbing 28% YOY to $2.9 billion.

In addition to the strong earnings report, AMD has been making strategic moves to bolster its position in the AI chip market. The company unveiled the Instinct MI350 Series GPUs last month, which have been lauded for their performance capabilities. HSBC analysts recently doubled their price target for AMD to $200, citing the competitive performance of the MI350 chips and the potential for higher adoption rates of AMD's CoWoS packaging [1]. The analysts also noted that the launch of the MI400 series, AMD's first full-rack AI server solution, could be a significant catalyst beyond 2025.

Goldman Sachs initiated coverage of AMD with a neutral rating and a $140 price objective, citing valuation concerns and competition in AI hardware. However, the investment bank acknowledged the company's promising AI pipeline and the potential for earnings growth driven by the MI350 and MI400 chips [2].

Investors are now closely watching AMD's fiscal second-quarter results scheduled for August 5. The market will be particularly focused on gross margin trends and data center revenue growth amid the increasing competition in AI hardware [2].

References:
[1] https://finance.yahoo.com/news/analyst-just-doubled-price-target-130002271.html
[2] https://www.ainvest.com/news/amd-stock-surges-hsbc-boosts-price-target-200-2507/