Update shared on31 Jul 2025
Fair value Increased 6.85%The upward revision in AMD's consensus price target primarily reflects a higher future P/E multiple applied by analysts, as revenue growth forecasts remain largely unchanged, resulting in a new fair value estimate of $154.23.
What's in the News
- AMD announced a major strategic collaboration with Aligned and USC ISI to develop the MEGALODON large language model using AMD Instinct MI300/MI325X GPUs and ROCm, aiming to train LLMs efficiently on non-NVIDIA architectures.
- Oracle and xAI partnered to offer Grok models via Oracle Cloud Infrastructure powered by AMD Instinct MI355X GPUs, highlighting Oracle’s commitment to large-scale AI with AMD hardware.
- AMD dropped from the Russell Top 50 Index.
- AMD and HCLTech forged an alliance to accelerate global enterprise digital transformation through AI, cloud, and joint innovation labs/centers.
- AMD launched its end-to-end open, rack-scale AI platform, unveiled Instinct MI350/MI355X GPUs with notable generational performance gains, and previewed MI400 Series; key industry partners like Meta, OpenAI, Microsoft, Oracle, and Cohere are adopting AMD for AI workloads.
Valuation Changes
Summary of Valuation Changes for Advanced Micro Devices
- The Consensus Analyst Price Target has risen from $145.97 to $154.23.
- The Future P/E for Advanced Micro Devices has risen from 34.96x to 36.78x.
- The Consensus Revenue Growth forecasts for Advanced Micro Devices remained effectively unchanged, moving only marginally from 18.3% per annum to 18.5% per annum.
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