TD Cowen Raises AMD Price Target to $115, Maintains Buy Rating Amid Strong Performance

Advanced Micro Devices Inc. (NASDAQ:AMD) is a global semiconductor company that is known for its graphics processing units (GPUs), microprocessors, and high-performance computing solutions. The company serves a range of high-growth industries like gaming, data centers, and AI.

On May 6, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported impressive financial results for Q1 2025. Q1 2025 revenue reached $7.4 billion, a 36% year-over-year increase. Gross profit for the quarter was $3.73 billion, up 46%. Net income surged by 476% to reach $709 million. The Data Center segment revenue in Q1 2025 was $3.7 billion, up 57% year-over-year. This revenue growth was driven primarily by sales of AMD EPYC CPUs and AMD Instinct GPUs. The Client and Gaming segment revenue was $2.9 billion, up 28% year-over-year. Client revenue rose 68% due to strong demand for the new “Zen 5” AMD Ryzen processors and a richer product mix.

Following the company’s Q1 2025 results, on May 7, TD Cowen analyst Joshua Buchalter reaffirmed a “Buy” rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) and increased the price target to $115 from $110. The analyst highlighted the company’s strong performance and sustainable gains in PC and server CPU market share as factors contributing to the company’s financial success. However, Buchalter noted challenges in the Data Center GPU segment for Advanced Micro Devices, Inc. (NASDAQ:AMD) during the first half of 2025 because of underwhelming results and write-downs. He emphasized that the expected sales inflection of the MI355 GPU in the second half of the year will be critical for AMD’s stock performance. Additionally, the upcoming AI event on June 12, 2025, is expected to provide more insights into Advanced Micro Devices, Inc.’s (NASDAQ:AMD) future plans and direction.

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