Market experts continue to express robust confidence in Advanced Micro Devices (AMD) as 2025 draws to a close. Despite a recent pullback from October peaks, a wave of positive analyst sentiment persists, fueled by impressive quarterly performance and significant strategic announcements.
Unwavering Analyst Backing
The investment community’s support for the semiconductor giant remains broad and deep. On December 3, Bank of America reiterated its Buy recommendation, attaching a $300 price target to the shares. This outlook is part of a wider consensus; among the 42 analysts covering AMD, an overwhelming majority advocate purchasing the stock. The average price target stands at $278.54, implying an approximate 26% upside from current levels. Targets span a wide range from $140 to $380, reflecting varied perspectives on the company’s execution of its artificial intelligence (AI) strategy. As of December 5, more than 80% of covering analysts have issued a Buy-equivalent rating, underpinned by a belief that AMD is well-placed within the AI semiconductor market.
Record-Breaking Quarterly Performance Fuels Optimism
The foundation for this sustained optimism was laid by the company’s third-quarter results, released on November 4. AMD posted record revenue of $9.25 billion, representing a 36% year-over-year increase. Adjusted earnings per share climbed 30% to reach $1.20. The data center segment was a particular standout, generating $4.3 billion in revenue, while the client segment surged by 46%. Chief Executive Officer Lisa Su highlighted broad-based demand for the company’s EPYC and Ryzen processors, as well as its Instinct AI accelerators.
Looking ahead, management provided fourth-quarter 2025 revenue guidance of approximately $9.6 billion, which would mark a 25% improvement compared to the same period last year.
Strategic Alliances with OpenAI and HPE
Recent high-profile partnerships are central to the bullish investment thesis. An agreement with OpenAI, announced in October, is viewed as a transformative development. AMD is set to supply 6 gigawatts of GPUs for OpenAI’s AI infrastructure, commencing with 1 gigawatt of Instinct MI450 GPUs in the second half of 2026. Chief Financial Officer Jean Hu indicated the deal could generate “tens of billions of dollars” in revenue over its lifetime.
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This was followed in early December by an expanded collaboration with Hewlett Packard Enterprise (HPE). HPE will be among the first original equipment manufacturers (OEMs) to leverage AMD’s “Helios” architecture—an open platform designed for large-scale AI workloads.
Ambitious Long-Term Financial Targets
During its Financial Analyst Day on November 11, AMD outlined ambitious long-term goals. The company aims to grow revenue by more than 35% annually over the next three to five years, while raising its operating margin above 35%. Adjusted earnings per share are projected to exceed $20. The data center business is expected to expand even faster, at over 60% per year, with the AI segment targeted to grow by more than 80% annually. “We have never been better positioned,” emphasized CEO Lisa Su.
China Export Licenses as a Potential Catalyst
At a conference in San Francisco on December 4, Su confirmed that AMD has received licenses to export certain MI308 chips to China. The third-quarter results and fourth-quarter outlook do not yet incorporate revenue from these sales. Should these approvals materialize into shipments, they could provide an additional source of growth.
Investors can expect further commentary when AMD participates in the Barclays Global Technology Conference on December 10. The company’s fourth-quarter earnings are scheduled for release in early February 2026, which will also include its initial outlook for the full fiscal year.
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