Wall Street analyst updates AMD stock price

Core Viewpoint - Advanced Micro Devices (AMD) is poised for significant growth in the AI sector, with a reaffirmed 'Buy' rating from TD Cowen and a price target of $290, indicating a potential upside of approximately 35% from the current price of $215 [1][7]. Group 1: AI Strategy and Product Development - AMD is entering a transformative phase with the upcoming Helios rack-scale AI system, which is expected to enhance its competitive position in the market [2]. - The company is approaching a critical inflection point that could strengthen its position in the rapidly growing AI accelerator market, particularly with the Helios system and the next-generation MI450 chip [3]. - AMD's expanding product roadmap and strengthening partnerships are expected to bolster its ability to compete in AI compute, as global demand for AI infrastructure continues to rise [6]. Group 2: Market Outlook and Financial Projections - The year 2026 is anticipated to be volatile for AMD as it transitions from early Helios deployments to broader commercial adoption, but the long-term outlook remains strong [5]. - TD Cowen's estimates suggest a significant increase in earnings per share (EPS) as Helios scales and AMD's AI strategy translates into substantial revenue [5]. - Wall Street analysts maintain a 'Moderate Buy' consensus on AMD, with an average 12-month price target of $284.67, indicating a potential upside of about 29.5% from the current stock level [7]. Group 3: Analyst Sentiment and Ratings - According to TipRanks, 38 analysts have updated their ratings on AMD, with 28 recommending 'Buy', 10 suggesting 'Hold', and none advising 'Sell', reflecting strong confidence in the company's growth prospects [9]. - Price targets among analysts vary widely, from a cautious $200 to an optimistic $377, indicating diverse expectations for AMD's performance across different sectors, including AI, data centers, gaming, and personal computers [9].