Bernstein Raises AMD Price Target to $140, Maintains Market Perform Rating

Bernstein has raised AMD's price target to $140, a 47.37% increase, but maintains its "Market Perform" rating. The new target reflects a more optimistic outlook on AMD's future performance. The average one-year target price for AMD is $146.01, with a high estimate of $200.00 and a low estimate of $95.00, and the estimated GF Value is $167.94, suggesting a 6.97% upside from the current price.

In a significant move, Bernstein Research has raised its price target for Advanced Micro Devices (AMD) to $140, representing a 47.37% increase from the previous target of $95. Despite this upward adjustment, Bernstein maintains its "Market Perform" rating. The new target reflects a more optimistic outlook on AMD's future performance, driven by several key factors.

The revision in the price target comes amidst a robust 28% price return for AMD over the past six months, as well as a projected Q2 2025 revenue of $7.52 billion with earnings per share of $0.49. Bernstein's updated estimates incorporate the resumption of China AI business and better future performance prospects, highlighting AMD's strong momentum. The firm also forecasts Q3 2025 revenue of $8.43 billion and full-year 2025 revenue of $32.0 billion.

Bernstein attributes AMD's recent stock performance to several factors, including the China AI business resumption, the upcoming MI350 product launch, continued market share gains, gaming recovery, and stabilization in the embedded segment. However, the firm remains cautious due to elevated valuations and expectations, as well as risks such as client channel flush and potential tariff pull-forward reversal.

The reversal of the ban on selling AMD's MI308X graphics processors into China for AI workloads has also significantly impacted AMD's valuation. Morningstar Equity Research notes that this reversal, announced on July 15, 2025, opens up new opportunities for AMD to compete in the Chinese market, traditionally dominated by Nvidia. This development is expected to add $1.2 billion in revenue for AMD in 2025 and $2.8 billion in 2029, reflecting the reinsertion of previously lost sales.

Despite the positive adjustments, Bernstein's caution aligns with InvestingPro's analysis, which indicates that AMD is trading above its Fair Value, with multiple valuation metrics at elevated levels. The company's next earnings report, scheduled for August 5, 2025, could provide crucial insights into its growth trajectory.

In other recent news, HSBC upgraded AMD to a Buy rating, setting a price target of $200, citing potential upside in AI revenue. Mizuho also raised its price target for AMD to $175, highlighting the opportunity for AMD to resume shipments of its MI308 chips to China. BofA Securities increased its price target to $175, pointing to stronger-than-expected data center GPU prospects, which could add $1 billion to AMD’s 2025 forecasts. Citi raised its price target to $165, maintaining a Neutral rating based on improving sentiment around AMD’s AI capabilities.

The AI revolution is accelerating at an unprecedented pace, driven by demand for high-performance computing in large language models, generative AI, and enterprise automation. Super Micro Computer (SMCI) and AMD are underappreciated players in this space, offering a more balanced risk-reward profile and poised to outperform in the next phase of AI infrastructure growth. AMD's MI350 series GPUs, including the MI355X, are redefining AI hardware with a 3nm process and competitive pricing, providing a cost-performance edge for data centers.

In summary, Bernstein's raised price target for AMD reflects a more optimistic outlook on the company's future performance. However, investors should remain cautious due to elevated valuations and ongoing uncertainties. The reversal of the ban on AMD's MI308X sales into China is a positive development, opening up new revenue streams and opportunities to compete in the lucrative AI market. The company's next earnings report will be a key indicator of its growth trajectory.

References:
[1] https://www.investing.com/news/analyst-ratings/amd-stock-price-target-raised-to-140-from-95-at-bernstein-93CH-4143877
[2] https://www.ainvest.com/news/amd-fair-estimate-rises-140-reverses-ban-sales-china-2507/
[3] https://www.ainvest.com/news/2-top-ai-hardware-stocks-buy-1-000-2025-smci-amd-2507/