Wall Street Sees More Upside for AMD (AMD) as Capex Rises

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Must-Watch AI Stocks on Wall Street. On August 13, Mizuho analyst Vijay Rakesh raised the price target on the stock to $205.00 (from $183.00) while maintaining an Outperform rating.

The rating affirmation comes as Hyperscaler capex continues to tick higher, while China adds another tailwind.

“We are raising our SepQ rev/EPS estimates from $8.71B/$1.14 to $8.80B/$1.15 (cons. $8.71B/$1.17), F25E from $33.2B/$4.00 to $33.4B/$4.02 (cons. $33.1B/$3.96), F26E from $39.3B/$6.01 to $39.9B/$6.09 (cons. $40.1B/$6.03), F27E from $45.1B/$7.39 to $46.5B/$7.62 (cons. $47.0B/$7.59). F25/26/27E Instinct GPU revs from $8.51B/$11.5B/$13.2B to $8.57B/$11.7B/$13/6B (cons. $7.91B/$9.42B/$10.2B). Reiterate AMD at Outperform and raise PT to $205 (prior: $183), 33.7x (prior: 30.5x) as we see AMD benefiting from MI308 ramps in China, while MI355 provides opportunity for upside with MSFT expected to see strong F26E capex.”

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Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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