Piper Sandler Maintains Overweight on Advanced Micro Devices (AMD), Raises PT

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 AI stocks that Jim Cramer and analysts are watching. On June 16, Piper Sandler raised its price target on AMD to $140 from $125 and kept an Overweight rating. The firm noted that AMD held its quarterly pre-quarter close call on Friday.

Piper expressed a positive view on recent product announcements, especially the Helios rack, which it believes is important for AMD Instinct growth. The firm expects a recovery in the GPU business in the fourth quarter of 2025, once most China-related charges have passed. It also observed that the client segment, the largest business unit, is beginning to experience some pull-ins.

On June 13, as per TipRanks, BofA maintained a Buy rating on AMD shares and a $130 price target. Following the Advancing AI Event in San Jose, where the company presented updates on its end-to-end AI infrastructure platform, BofA analyst Vivek Arya noted that “investor expectations might have been high.”

He stated that the event demonstrated AMD’s continued progress in its AI roadmap, expansion across customers and partners, and development in software. The company emphasized existing partnerships with Meta, Oracle, Microsoft, xAI, OpenAI, and Humain in Saudi Arabia. No new hyperscaler customer was formally announced. The analyst mentioned a possible engagement with Amazon’s AWS, which sponsored the event, though noted that AWS typically reserves announcements for its own forums.

Lastly, on June 9, admitting that he has “always liked” the company, Cramer said:

“So traders say if I can’t make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too…I saw some upgrades for AMD…. They’ve moved, especially AMD by the way, on speculation it might be involved with any China deal. Rare earth materials for us, AMD chips for them.

Now, this kind of rotation could be a good one. The stocks that are rallying are excellent. They may be just playing catch-up. It’s a heavily broadening out of the winners, right? Remember when it was just the Mag Seven? We’ve come a long distance, but what comes after this could be treacherous. I’ve seen the end of rallies, and they often take up the laggards last. After it happens, if we have good news, everything’s fine. However, if there’s any degradation in the numbers, it could get very ugly. Right now we’re fine… I’ve always liked AMD, as you know.”

Advanced Micro Devices (NASDAQ:AMD) designs and supplies semiconductor products, including AI accelerators, GPUs, x86 microprocessors, and adaptive system-on-chip solutions. The company provides compute infrastructure for hyperscale environments and supports artificial intelligence workloads through its hardware and development platforms.

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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Disclosure: None.