By Advanced Micro Devices (NASDAQ: AMD) heads into its second-quarter earnings report on Tuesday with strong backing from Wall Street analysts, who point to robust demand across data center, PC, and GPU markets as potential drivers for an earnings beat.
The Santa Clara-based chipmaker will release results after the market closes, with FactSet consensus estimates calling for earnings per share of $0.48 on revenue of $7.4 billion.
AMD shares have surged more than 46% so far in 2025, through Monday’s close of $176.78.
Analysts at major investment banks—including Bank of America, Wells Fargo, UBS, and Melius Research—are optimistic the company is well-positioned for the second half of the year, with some seeing double-digit upside in the stock.
Bank of America: tariff effects and cloud growth could drive upside
Bank of America analyst Vivek Arya raised his price target on AMD to $200 from $175, maintaining a “buy” rating.
His forecast implies about 13% upside from Monday’s close. Arya noted that AMD’s PC outlook for the back half of 2025 may be “potentially de-risked” as consumers purchase ahead of tariffs under President Donald Trump’s administration.
Arya also highlighted continued strength in cloud capital expenditures and strong pricing for AMD’s current-generation MI355X GPUs as likely contributors to growth.
These factors could push AMD beyond the “strong double-digit growth expectation” already priced into forecasts, he said.
Wells Fargo and UBS see datacenter and GPU momentum
Wells Fargo analyst Aaron Rakers reiterated an “overweight” rating with a $185 price target, suggesting about 5% upside.
In a mid-July update, Rakers increased his EPS estimate to $0.47 from $0.44 and his revenue forecast to $7.49 billion from $7.395 billion.
He cited AMD’s continued market share gains in server and PC CPUs, growing datacenter GPU traction, and accelerating operating leverage.
Rakers sees AMD’s earnings power exceeding $6 per share by 2025.
UBS offered one of the most bullish targets, raising its price forecast to $210 from $150, implying about 19% upside.
Analyst Timothy Arcuri expects an “upside bias” to Q2 results, driven by strength in both PC and server segments.
UBS projects AMD will be annualizing $10 billion in datacenter GPU revenue by the end of 2025, with potential to hit $13 billion in 2026.
Arcuri cited strong customer interest in rack-scale MI400 Helios systems as a key growth driver.
Melius Research flags China as a key AI revenue catalyst
Melius Research analyst Ben Reitzes maintained a “buy” rating with a $175 price target, implying about 1% downside from current levels.
Reitzes said resumed shipments to China could add $3 billion to AI revenue on an annualized basis, pushing total AI revenue above $15 billion next year—well ahead of prior consensus estimates.
He added that AMD’s valuation multiple could benefit from China’s return to its total addressable market.
If AMD can introduce a second AI chip tailored to China, similar to Nvidia’s RTX PRO, revenues could reach a $700 million-per-quarter run rate, given surging demand for compute capacity following the DeepSeek launch.
As AMD prepares to release its quarterly results, analysts broadly agree that strong demand trends, strategic product launches, and improving access to the Chinese market put the company in a position to outperform expectations in the months ahead.
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