Update shared on08 Aug 2025
Fair value Increased 15%Advanced Micro Devices’ fair value estimate has increased, primarily reflecting modest improvements in net profit margin and revenue growth forecasts, resulting in a higher consensus analyst price target rising from $155.96 to $178.78.
What's in the News
- AMD guided Q3 2025 revenue to ~$8.7B, implying ~28% YoY and ~13% sequential growth.
- Oracle and partners are deploying AMD Instinct MI355X GPUs for large-scale AI workloads in OCI, with xAI’s Grok models and significant price-performance gains over prior generations.
- AMD announced a strategic collaboration with Aligned and USC ISI to train the MEGALODON large language model on AMD MI325X GPUs, advancing AMD’s position in AI compute outside of traditional NVIDIA-dominated environments.
- AMD and HCLTech formed a strategic alliance to accelerate enterprise digital transformation via joint innovation labs and advanced AI, digital, and cloud solutions.
- AMD showcased material advances in its Instinct MI350 Series GPUs and open AI infrastructure, with broad adoption among major industry players (Meta, OpenAI, Microsoft, Oracle), and set a goal to achieve a 20x improvement in rack-scale AI energy efficiency by 2030.
Valuation Changes
Summary of Valuation Changes for Advanced Micro Devices
- The Consensus Analyst Price Target has significantly risen from $155.96 to $178.78.
- The Net Profit Margin for Advanced Micro Devices has risen slightly from 19.44% to 20.40%.
- The Consensus Revenue Growth forecasts for Advanced Micro Devices has risen slightly from 18.5% per annum to 19.3% per annum.
Disclaimer
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