Analysts set AMD stock price target for 2025

Growth Forecast and Market Share Expansion - The analyst forecasts substantial growth for AMD in 2025, driven by gains in AI, server processors, and PC clients, with a price target of $175, reflecting a 40% increase from the current valuation [1][2] - AMD is expected to expand its market share in AI GPUs, server CPUs, and PC clients as challenges in embedded and gaming sectors ease [2] - AI revenue is projected to reach $9.5 billion in 2025, up from $5.2 billion, driven by the MI325X GPU [3] - Server revenue is predicted to grow 10% YoY to $8.5 billion in 2025, fueled by Turin chips outperforming Intel's Granite Rapids [3] Product Roadmap and Competitive Positioning - AMD's product roadmap, competitive positioning, and market dynamics offer significant upside potential in 2025 [4] - The company's growth in CPUs and GPUs, particularly the strong performance of its Epyc CPUs and upcoming M1350 and M1400 GPUs, are key drivers [6] - The difference in price targets between Northland ($175) and Rosenblatt ($250) reflects varying assumptions about GPU adoption and product performance [5][6] Market Sentiment and Stock Performance - The general sentiment around AMD remains bullish, with 31 Wall Street analysts expecting a 47% surge in share price to $184 in the next 12 months [7] - AMD's stock closed at $125.19, with modest gains of 0.10% and weekly growth of over 6%, despite being down almost 10% year-to-date in 2024 [8] - In pre-market trading on December 30, the stock was down 1%, trading at $123.98 [9] Challenges and Competition - AMD faces intense competition from Nvidia, which currently dominates the market [7] - Concerns that the AI market may have peaked could potentially dampen long-term growth [10]