Cantor Fitzgerald Reiterates Overweight on AMD, $120 Price Target

Cantor Fitzgerald analyst C.J.

Muse reiterated an Overweight rating and $120 price target on AMD (NASDAQ: AMD).

“AMD offered a better than feared report for 1HCY25, while the 2HCY25 outlook remains clouded based on an uncertain seasonal outlook for Client/DC CPU (at least for us).

Let’s start with the good news — where March Q results ($7.44B/$0.96 vs. cons of $7.1B/$0.94) and June Q guide ($7.4B/$0.90 vs. cons. of $7.22B/$0.88, excluding one-time inventory charge) came in better than feared, notwithstanding pulling out $700M MI308 Instinct guided revs related to the China GPU embargo from the June Q guide.

Sticking with the company’s DC Instinct outlook, AMD sees a total negative impact of $1.5B for all of CY25 (sounds like $500M impact 3Q, $300M 4Q) related to the China embargo, but still reiterated expectations for “strong double-digit growth” in this segment for all of CY25.

We had modeled a $1.5B cut to $5.5B, but now model $6.0B for 17% growth in CY25E, followed by $8B in CY26E (helped by MI400/rack scale ramp).”

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