TLDR
- AMD stock gets price target hike from Citi analyst Christopher Danely to $145 from $120 ahead of Q2 earnings on August 5
- Wall Street expects AMD to report EPS of $0.49 on revenues of $7.41 billion for Q2 2025
- AMD announced a new $6 billion share repurchase program, expanding total repurchase authority to approximately $10 billion
- Company formed strategic partnerships including $10 billion AI infrastructure collaboration with Saudi Arabia’s HUMAIN
- AMD agreed to sell ZT Systems’ manufacturing business to Sanmina for $3 billion while retaining design teams
Christopher Danely, a 5-star analyst at Citi, raised his price target on AMD to $145 from $120 ahead of the company’s second-quarter earnings report. The chipmaker is scheduled to announce Q2 results on August 5.
Wall Street expects AMD to report earnings per share of $0.49 on revenues of $7.41 billion for the second quarter. Danely kept his Neutral rating on the stock despite the price target increase.
The analyst ranks 610 out of more than 9,700 analysts on TipRanks. He maintains a 66% success rate with an average return per rating of 11.40% over a one-year period.
Danely believes improving industry trends could help AMD and other chipmakers in the coming months. He raised his estimates for the company, noting that demand remains solid and companies are starting to rebuild inventory.
The price target increase reflects Danely’s view that AMD could benefit from a stronger market for chips. While the Neutral rating suggests caution, the new target shows potential upside if Q2 numbers beat estimates.
Share Repurchase Program Expansion
AMD announced a new $6 billion share repurchase program, expanding its total repurchase authority to approximately $10 billion. This move reflects the board’s confidence in AMD’s strategic direction and growth prospects.
The expanded buyback program comes as the company focuses on returning capital to shareholders. The announcement coincides with other strategic moves designed to strengthen AMD’s market position.
AMD formed a strategic alliance with HCLTech to accelerate enterprise digital transformation. The partnership focuses on AI, digital, and cloud computing solutions using AMD’s EPYC, Instinct, and Ryzen PRO processors.
The collaboration includes co-investment in innovation labs and joint development centers. This partnership aims to expand AMD’s reach in enterprise markets.
Major Infrastructure Deal
AMD and Saudi Arabia’s HUMAIN announced a $10 billion partnership to develop advanced AI infrastructure. The deal aims to deploy 500 megawatts of AI compute capacity over five years using AMD’s full AI compute portfolio.
This partnership represents one of AMD’s largest infrastructure deals to date. The collaboration positions AMD to compete in the rapidly growing AI infrastructure market.
AMD agreed to sell ZT Systems’ data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock. The company will retain ZT’s design and customer enablement teams.
Sanmina will become AMD’s preferred manufacturing partner for cloud and AI solutions. This move aligns with AMD’s strategy to focus on core chip design while strengthening U.S.-based AI system manufacturing.
At COMPUTEX 2025, AMD and ASUS unveiled the Expert P-series Copilot+ AI PCs powered by Ryzen AI 300 Series chips. AMD also introduced new Radeon RX 9060 XT graphics cards and the Ryzen Threadripper 9000 series.
The product launches reinforce AMD’s position in gaming, workstations, and AI development. These announcements demonstrate the company’s continued innovation across multiple product categories.
AMD’s Instinct GPUs are now fully enabled on Red Hat OpenShift AI. The company successfully tested MI300X GPUs for AI inferencing on Red Hat Enterprise Linux AI.
Mizuho recently raised its price target to $135, citing AMD’s expanding role in AI and data center processors. The analyst firm remains bullish on AMD’s competitive position.
According to TipRanks, AMD stock has a Moderate Buy consensus rating based on 24 Buys and 10 Holds. The average price target of $133.62 suggests the stock is fully valued at current levels.
Elon Musk confirmed that xAI and Tesla plan to continue large-scale GPU purchases from AMD, underscoring robust demand for the company’s AI-grade chips.
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