AMD(US:AMD) Zhi Tong Cai Jing·2025-07-11 03:56Core Viewpoint - Goldman Sachs maintains a "Neutral" rating on AMD (AMD.US) with a target price of $140, citing impressive returns and revenue but concerns over growth potential due to intense competition in the AI and GPU sectors [1] Financial Performance - AMD's revenue has grown by 21.71% over the past 12 months, reaching $27.75 billion, with a return of 19.28% over the last six months, reflecting strong investor enthusiasm for AI [1] - The company's current P/E ratio stands at 101.36, indicating a historically high valuation [1] Competitive Landscape - AMD faces challenges in the server CPU market as the adoption of ARM-based processors increases, which are favored for their efficiency and scalability [2] - The company’s commercial GPU products are under significant competition from NVIDIA, which benefits from a strong AI software stack and established ecosystem [2] - Increased funding is flowing towards ASICs designed for specific AI tasks, presenting another challenge for AMD [2] Analyst Sentiment - Analysts express uncertainty regarding AMD's AI future, with mixed reports on its prospects. KeyBanc Capital Markets maintains a "Market Perform" rating, projecting $7-8 billion in AI revenue from the MI355 AI GPU by 2025 [3] - Truist Securities holds a "Hold" rating, citing uncertainties in the company's data center GPU strategy and customer acceptance [3] - Mizuho raises its target price to $152, adjusting revenue expectations for the June quarter to $7.4 billion [3] Optimistic Outlook - Melius Research upgrades AMD to a "Buy" rating with a new target price of $211, based on potential EPS of $8 within two years [4] - HSBC also upgrades AMD to "Buy," doubling its target price from $100 to $200, citing the premium pricing of the new MI350 series products [4] - The MI350 chips' compatibility with existing data center infrastructure is seen as an attractive feature [4] Upcoming Financial Disclosure - AMD is set to release its Q2 fiscal year 2025 earnings report on August 5, which is anticipated to provide insights into its AI plans, revenue trajectory, and profitability amid significant R&D investments [5]