RBC Capital Raises AMD Price Target to $325

RBC Capital analyst Srini Pajjuri raised the price target on AMD (NASDAQ: AMD) to $325.00 (from $230.00) while maintaining a Sector Perform rating.

“We expect a beat/raise although by a lesser magnitude than INTC. While CPU demand is strong, AMD has lower exposure than INTC and tight wafer supply is also a factor.

On the AI GPU front, we see slight upside and expect a reiteration of MI4xx (Helios) ramp schedule at OpenAI/META.

Management previously alluded to additional GW-scale customers though any announcements appear more likely at the upcoming AI event.

Looking ahead, secular growth in CPU-to-GPU ratio should be a tailwind, and we remain optimistic about AMD’s AI GPU prospects.

However, at 33xCY27P/E (~75% premium to NVDA), risk/reward appears fairly balanced.”

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