TLDR
- Erste Group analyst Stephan Lingnau upgraded AMD from Hold to Buy rating, citing good growth prospects and increasing data center demand
- President Trump lifted the AI chip export ban to China, opening a huge market for AMD, Nvidia, and Intel
- Multiple analysts raised price targets following the export ban lift, including Citi’s increase to $165 and Bernstein’s to $140
- AMD stock was up 1.42% on Monday, extending a 29.88% year-to-date rally with 6.98% gains over 12 months
- Q2 2025 earnings beat expectations with $7.5 billion revenue and $1.42 EPS, showing strong data center growth
Advanced Micro Devices received a welcome boost on Wednesday when Erste Group analyst Stephan Lingnau upgraded the stock from Hold to Buy. The analyst didn’t provide a specific price target but expressed confidence in the chipmaker’s future prospects.
Lingnau pointed to strong growth potential in his research note to clients. He highlighted increasing demand for processors and graphics processing units in data centers as key drivers for the company’s performance.
The upgrade comes at a particularly opportune time for AMD. President Trump recently lifted the export ban on artificial intelligence chips to China, opening up massive market opportunities for the semiconductor giant.
This policy change has created a wave of optimism across the chip sector. AMD now has access to one of the world’s largest markets for high-performance AI products, alongside rivals Nvidia and Intel.
Analyst Sentiment Turns Positive
The Erste Group upgrade is part of a broader trend among Wall Street analysts. Multiple firms have raised their price targets and ratings following the China export ban reversal.
Citi analyst Christopher Danely, who holds a five-star rating, boosted his price target to $165 from $145. Meanwhile, Bernstein’s Stacy Rasgon, also a five-star analyst, increased his target to $140 from $95.
These upgrades reflect growing confidence in AMD’s ability to capitalize on the expanding AI market. The company’s latest Instinct MI400-series AI accelerators have been gaining traction against Nvidia’s dominance.
Major cloud providers including Microsoft Azure and AWS are expanding their AMD-powered infrastructure. This diversification away from single-vendor solutions is creating new revenue streams for the company.
Strong Financial Performance Continues
AMD’s recent financial results have supported the bullish analyst sentiment. The company’s Q2 2025 earnings, released on July 17, beat Wall Street expectations across key metrics.
Revenue came in at approximately $7.5 billion, while earnings per share reached $1.42. Both figures exceeded analyst forecasts, demonstrating the company’s operational strength.
The data center and embedded segments showed particularly strong growth. PC and gaming chip sales displayed more moderate expansion, reflecting mixed consumer demand patterns.
CEO Lisa Su reaffirmed the company’s full-year guidance during the earnings call. She cited robust AI adoption rates and upcoming product launches as key factors supporting the outlook.
Stock performance has been solid but volatile throughout 2025. Shares were up 1.42% on Monday, extending a year-to-date rally of 29.88%.
Over the past 12 months, AMD stock has gained 6.98%. While this trails GPU rival Nvidia’s performance, the AI boom has still provided substantial returns for shareholders.
Current trading ranges show AMD shares hovering around $160-$170. This represents a decline from early-2024 highs near $210 but marks recovery from recent lows.
Wall Street maintains a Moderate Buy consensus rating based on 25 Buy and 10 Hold recommendations over the past three months. The average price target sits at $145.90, though recent upgrades may push this higher in coming weeks.
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