Cantor Fitzgerald Maintains Overweight on AMD, $140 Price Target

Cantor Fitzgerald analyst C.J.

Muse reiterated an Overweight rating and $140 price target on AMD (NASDAQ: AMD).

“AMD hosted a well-attended Advancing AI 2025 Event earlier today, along with an analyst track, with leaders from various portions of the business.

As we had previewed, the company discussed broad growth drivers in AI, announced the availability of its Instinct MI350 GPU, highlighted benefits to open-source software and significant advances in its ROCm software stack (along with the launch of ROCm 7), and teased its next-generation end-to-end integrated AI platform, “Helios,” which will launch in CY26.

Additionally, the company discussed deep engagements with customers, with testimonials from many industry leaders including OpenAI, xAI, Microsoft, Meta, Oracle, Humain, Marvell, Redhat, and others.

While the company remains quite confident in its MI350 ramp, customers unsurprisingly appeared to be significantly more excited around MI400/450 and the introduction of rack-scale solutions with Helios in CY26.

We look for a significant step-up in 2HCY25 with the launch of MI350 (+26% H/H), with revenues coming in at $6B, though we see upside risk to our estimate.

Additionally, if AMD is able to scale its system-level solutions on time and without issues, like those seen at NVIDIA, we believe there could be considerable upside to our CY26 estimates for Data Center GPU (we currently model $8B but see upside potential for $10-12B).

One incremental negative was the lack of announcement around new customers, something that we believe investors had hoped for, and in our view, part of the reason shares underperformed modestly during the day (-2% vs SOX flat).

Overall, the day reaffirmed our view that CY25 is more of a stopgap year with more meaningful revenue acceleration into the CY26/CY27 timeframe as AMD solidifies itself as a clear second source for GPUs.

This said, focus continues to be on execution of full-stack solution vs. NVDA as the clear leader, so clearly more wood to chop.

But in a world that is quickly adopting AI, we continue to view a rising tide as a source of strength for both NVDA… and AMD.”

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