TLDR
- Piper Sandler analyst Harsh Kumar reiterated Buy rating with $190 price target for AMD stock, implying 18.5% upside
- AMD stock gained 1.22% on Monday, extending year-to-date rally to 32.88%
- Analyst cited strong performance expected across server, client, GPU, and embedded businesses through 2025-2026
- The bullish coverage countered recent downgrades from Erste Group and Seaport Global analysts
- Wall Street consensus remains Moderate Buy with average price target of $188.07
Advanced Micro Devices stock climbed on Monday after receiving renewed bullish coverage from a top-rated analyst. Piper Sandler’s five-star analyst Harsh Kumar reiterated his Buy rating and maintained a $190 price target.
The price target suggests an 18.5% upside potential from current levels. Kumar’s analysis highlighted the company’s recent strong performance trajectory.
The analyst expects this momentum to continue through 2025 and into 2026. He specifically noted strength across multiple business segments.
AMD’s server business appears well-positioned for continued growth. The client segment also shows promising fundamentals according to Kumar’s assessment.
The GPU division remains a key driver of the company’s performance. This segment has benefited from increased demand related to artificial intelligence applications.
Kumar also spotlighted AMD’s embedded business as another positive factor. He views this segment as an underappreciated growth opportunity.
Multiple Segments Driving Performance
The analyst’s optimism stems from what he calls “fundamental tailwinds set to come on in the coming quarters.” These tailwinds span across AMD’s core business areas.
The server market continues to show strong demand for AMD’s processors. Data center customers are increasingly adopting the company’s products.
Client computing also presents growth opportunities as the market recovers. AMD has gained market share in this segment over recent quarters.
Recent Stock Performance and Analyst Views
AMD shares gained 1.22% on Monday following the analyst update. The stock has rallied 32.88% year-to-date, outpacing many technology peers.
Over the past 12 months, shares have climbed 4.27%. This performance reflects the company’s position in the AI boom.
Kumar’s bullish stance comes after recent negative analyst coverage. Erste Group analyst Hans Engel downgraded the stock last week.
Seaport Global analyst Jay Goldberg also issued a downgrade earlier this month. These downgrades had weighed on investor sentiment.
The Piper Sandler coverage helped restore some optimism among investors. It reinforced the view that AMD’s fundamentals remain solid.
Wall Street analysts maintain a Moderate Buy consensus rating on AMD. This rating is based on 23 Buy recommendations and 12 Hold ratings from the past three months.
The average analyst price target sits at $188.07. This implies potential upside of 17.13% from current trading levels.
AMD management expressed strong optimism during a recent pre-quarter call. They outlined positive business prospects for the second half of 2025 and into 2026.
