With New AI GPUs, Citi Sees Momentum Building for Advanced Micro (AMD)

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the 10 best tech stocks to buy according to billionaires right now. On June 9, Citi analyst Christopher Danely raised his price target for Advanced Micro Devices to $120 from $100, maintaining a Neutral rating. The analyst’s outlook is influenced by several factors, including AMD’s latest product launches and the potential to attract new customers, which could be further enhanced by the company’s upcoming event “Advancing AI’ on June 12.

Danely notes that investors are watching closely as Advanced Micro Devices Inc. (NASDAQ:AMD) unveils the MI355X and shares updates on the MI400. While expectations are high, there are concerns about profitability, especially since AMD acknowledges that its AI-focused products are currently weighing on margins. The analyst believes that the question now is how the company plans to improve its financial position.

Advanced Micro Devices Inc. (NASDAQ:AMD) has certain strengths compared to Nvidia, such as expanded HBM capacity in the MI355X and a more flexible approach with its ROCm software. Despite this, the analyst believes that Nvidia continues to dominate the market and creates a competitive challenge.

Looking ahead, Danely expects AMD to gain momentum in the second half of 2025. He notes that a recovery in the high-margin Xilinx segment could boost overall profitability, while the MI355X and MI400 launches may strengthen its presence in key AI business.

While a one-time charge linked to export controls has prompted him to adjust his earnings forecast, the analyst raised the price target to reflect improving sentiment in the sector.

In addition, Bank of America analyst Vivek Arya recently pointed to similar trends for AMD following conversations with the company’s management. He observed that AMD is experiencing solid sell-through momentum in the second quarter, supported by the launch of higher average selling price (ASP) products. Arya also noted the potential for typical seasonal strength in the second half of the year.

On another note, the stock also recently found support after the company revealed its New Ryzen Xbox Gaming Chips that will be featured in Microsoft’s upcoming ROG Xbox Ally handheld devices.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

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