Bernstein SocGen Raises AMD Price Target to $235
Bernstein SocGen Group analyst Stacy Rasgon raised the price target on AMD (NASDAQ: AMD) to $235.00 (from $225.00) while maintaining a Market Perform rating.
“Overall, we believe investors have been girding for a strong print, which we got.
However, it seems a bit of a kerfuffle that in such an intense environment, overall results weren’t all that much beyond “inline” without the China boost.
On the positive, server trends admittedly appear very solid, and client share gains continue.
On the other hand near-term AI numbers are not really inflecting (outside of China that no one really wants to pay for) and the pace and trajectory of the OpenAI ramp remains a bit up for debate (at a minimum it clearly seems increasingly likely to be a Q4 volume game), and client headwinds may materialize into the 2H (alongside console headwinds that are happening now).
And of course the opex ramp is starting to become a bit tiresome (we get the need for spending but execution against spending guidance has been lackluster…).
We suppose it remains a waiting game (at 35x, the most expensive of the AI names). We don’t hate it, but would rather play elsewhere.
We raise estimates (higher revenue offset somewhat by higher spending), PT to $235 (25x, unchanged on FY27 EPS of $9.25).
We rate AMD MP.”
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