Here’s When AMD Stock Will Hit $180, Analysts Say

After the recent slump in the broader technology sector that sent shares of Advanced Micro Devices (NASDAQ: AMD) tumbling, analysts believe data center and client segments will help the chipmaker carve out a slice of the artificial intelligence (AI) pie and recoup some of its losses.

This thesis is supported by the semiconductor company’s recent strong second-quarter earnings report on July 30. The report revealed that revenue was up 9% from a year earlier, reaching $5.84 billion and beating analysts’ expectations by $114 million. Adjusted earnings per share (EPS) also rose 19%, rising to $0.69, $0.01 more than the $0.68 expected.

In addition, to expand its AI business, AMD recently announced on August 12 the acquisition of Silo AI, the largest private AI lab in Europe. The $665 million acquisition is intended to deliver the best possible end-to-end solutions and integrate engineers and scientists from both companies.

Morgan Stanley predicts AMD shares will be worth $178

On July 31, Morgan Stanley’s Joseph Moore raised his price target on Advanced Micro Devices shares by 1.1%, from $176 to $178, while maintaining a “hold” rating.

Moore noted that AMD’s Q3 2024 guidance was stronger than expected, with expected revenue of $6.4 billion to $7 billion, reflecting 16% year-over-year growth at the midpoint. He was particularly impressed with the company’s bullish AI outlook, noting that AMD raised its fiscal year 2024 target from $4 billion to $4.5 billion.

A Morgan Stanley analyst said that “a strong quarter, especially in the context of a strong pre-release sell-off, should provide some relief.”

Phillip Securities Sets AMD Share Target at $180

On August 1, Phillip Securities analyst Jonathan Woo reiterated a “buy” rating on AMD shares, setting a price target of $180.

Woo predicts a stronger second half of the year as MI300X growth continues, the Embedded segment recovers, and demand for MI300X remains strong. This, combined with better-than-expected supply growth, is leading AMD to raise its fiscal 2024 sales forecast to over $4.5 billion.

AMD accelerates AI product launches to match NVIDIA’s year-over-year pace with new AI accelerators that seamlessly integrate with MI300X infrastructure.

Woo says, “We believe AMD is still well-positioned to capture AI-related investment due to its strong accelerator pipeline, while also gaining market share in traditional servers as enterprises transition to the cloud.”

Some analysts disagree with their colleagues on AMD stock

While Moore and Woo welcomed AMD’s latest earnings report, other analysts took a more cautious approach.

William Stein of Truist Securities lowered the price target from $162 to $156 while maintaining a “hold” rating.

Similarly, Cantor Fitzgerald’s CJ Muse lowered its price target from $200 to $180, but maintained a “strong buy” rating.

Bank of America’s Vivek Arya lowered his price target from $195 to $180 but maintained a “strong buy” rating.

Despite these downward revisions, the overall sentiment among top analysts remains positive. According to TipRank rankings25 of 31 analysts have rated AMD as a “buy,” while only 6 have recommended a “hold.” Interestingly, none of the analysts recommend selling the stock.

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