Cantor Fitzgerald Raises AMD Price Target to $140

Cantor Fitzgerald analyst C.J.

Muse raised the price target on AMD (NASDAQ: AMD) to $140 (from $120) while maintaining an Overweight rating.

“AMD will host its Advancing AI 2025 Event that includes a keynote by Dr. Lisa Su, as well as a developer track that includes a number of technical sessions and speakers.

Overall, AMD’s Advancing AI events continue to serve as the company’s most important showcase of the year for its Datacentric products, and help frame the discussion of the importance and sizing of AI into the coming years.

The day will likely be largely focused on upcoming Instinct products, specifically the MI350, which the company previously announced that it would be pulling in production to mid-2025, as well as likely updates to future products (MI400 and beyond).

Elsewhere, we look for updates to its ROCm software stack, as well as progress on rack-scale solutions, now that the acquisition of ZT Systems has been finalized.

Lastly, we look for an update on the AI TAM, with the time frame likely pushed out to CY29 (most likely) or CY30, with a likely bump to the TAM towards ~$600B.

We believe that CY25 is likely a transition year, with investors turning their focus on AMD’s ability to gain share in next year’s MI400 product cycle.

While still early, we believe that if we get commentary on new design wins into CY26, as well as a clearer vision for a total solution framework, coupled with robust software and hardware, shares could begin to outperform the broader Semiconductor market from here.

Thus, all eyes on new potential customer announcement and confidence that AI Accelerator revenues could track closer to $10-12B (vs. our modeled $8B), led by MI400 product ramp (helped greatly by ASP +25%+), which would support vision to $6+ in EPS and upside closer to $150 or more.

Our sense?

This event will be a modest positive, but think greater confidence in Instinct revenue ramp into 2026 will come later in CY25 and, that after run-up of 50+% since April lows, share performance could take a near-term pause.

Thus, all eyes on MI400, push to full-rack system solutions, ROCm software updates, and path to $6 in EPS in 2026E.

We maintain our Overweight rating and raise our price target of $140 from $120 — recognizing our current model is likely conservative (CY26E EPS $5.30), with path to $5.50-5.75 more reasonable, which supports fair value closer to $140 (25x).

Longer term, depending on market share capture for AMD, we see potential for $25-50B in GPU Accelerator (5-10% market share of $500B TAM) revenues, which could support $10+ in annual EPS.”

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