Advanced Micro Devices Inc. (AMD, Financials), the semiconductor company competing with Nvidia in artificial-intelligence chips, received higher price targets from Jefferies and Truist even after its shares fell 7% following quarterly results.
Jefferies analyst Blayne Curtis raised his target to $650 from $640 and maintained a Buy rating. Although AMD's results did not clear investors' elevated expectations, Curtis believes its AI graphics-processor business could generate more than $40 billion in 2027, up from his previous $30 billion estimate.
Truist analyst William Stein raised his target more sharply, to $594 from $478, while keeping a Buy rating. He expects stronger products, improving supply and large customer deployments to support faster data-center growth.
AMD reported second-quarter revenue of $11.54 billion, up 50%, while data-center sales more than doubled to $6.72 billion. The company forecast approximately $13 billion in third-quarter revenue, ahead of consensus.
The stock's decline showed that investors wanted a larger near-term surprise. The analyst actions suggest Wall Street remains focused on AMD's longer-term opportunity.
Investors will next watch fourth-quarter AI-chip shipments and the rollout of AMD's Helios systems.