Investment bank TD Cowen increased its price target on Advanced Micro Devices, Inc. (AMD) to $115 from $110 and kept a Buy rating on the shares.
Advanced Micro Devices, Inc. (AMD) gained significant market share in the PC and CPU server markets, the investment bank reported.
The Positive Aspects of AMD
In addition to gaining market share in the PC and CPU server markets, the revenue generated by the firm’s MI355 AI chips is likely to climb significantly in the second half of the year, according to TD Cowen.
Moreover, the company’s growth outlook as a whole remains strong, the analyst stated.
The Negative Aspects of AMD
The company’s data center unit did not perform well in the first half of the year, and it had to take write downs, TD Cowen noted.
TD Cowen cut its 2025 and 2026 estimates for the firm slightly and warned that its earnings and margins would be negatively affected by higher costs going forward.
The Recent Price Action of Advanced Micro Devices, Inc. (AMD) Stock
In the last month, the stock has gained 17%, while it has dropped 6% in the last three months.
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This article is originally published at Insider Monkey.
