Morgan Stanley raises AMD target price to $246 from $168

Morgan Stanley raises Advanced Micro Devices target price to $246 from $168

In a significant move, Morgan Stanley has raised its target price for Advanced Micro Devices (NASDAQ: AMD) to $246, up from the previous target of $168. This adjustment comes amidst a mix of bullish and bearish analyst sentiments surrounding the semiconductor giant .

The latest analyst ratings for AMD, as of September 12, 2025, reflect a diverse range of opinions. Among the 28 analysts providing ratings, 12 expressed a somewhat bullish view, while 9 remained indifferent. The remaining ratings were split between somewhat bearish and bearish sentiments, with no analysts rating the stock as bearish .

The 12-month price targets assessed by analysts reveal an average target of $193.93, with a high estimate of $300.00 and a low estimate of $140.00. Morgan Stanley's new target price of $246 is above the current average, suggesting a more optimistic outlook on AMD's future performance .

Key analysts have made notable adjustments to their ratings and price targets in recent months. For instance, Cody Acree of Benchmark raised his rating to "Buy" with a price target of $270.00, while Tom O'Malley of Barclays raised his rating to "Overweight" with a price target of $300.00. Conversely, Frank Lee of HSBC lowered his rating to "Buy" with a price target of $185.00 .

Advanced Micro Devices (AMD) designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications. The company's traditional strength lies in central processing units (CPUs) and graphics processing units (GPUs) used in PCs and data centers. In 2022, AMD acquired field-programmable gate array leader Xilinx to diversify its business and expand opportunities in key end markets such as data centers and automotive .

The company's market capitalization is below the industry average, indicating a relatively smaller size compared to peers. However, AMD's revenue growth rate of 31.71% as of June 30, 2025, signifies a substantial increase in top-line earnings. The company's net margin of 11.35% exceeds industry averages, showcasing strong profitability and effective cost control. Despite these positive indicators, AMD's return on equity (ROE) and return on assets (ROA) lag behind industry averages, suggesting challenges in maximizing returns from equity and assets .

Analyst ratings provide qualitative insights into stock performance, with ratings ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AMD compared to the broader market. Morgan Stanley's new target price reflects a bullish outlook, indicating confidence in AMD's future prospects.

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