Bernstein analyst Stacy Rasgon has raised her price objective for Advanced Micro Devices Inc. to $235.00 from $225.00, while keeping a Market Perform rating on the shares. At the time of the note, AMD was trading at $242.11, a level modestly higher than Bernstein's updated target. Analyst price targets across the coverage universe range from $210 to $380.
Third-party valuation data indicates the stock appears slightly overvalued relative to a fair value assessment. That same data set also shows AMD grew revenue by 31.83% over the trailing twelve months, with consensus estimates pointing to continued sales growth through the current year.
Rasgon highlighted that AMD posted a strong quarterly result, but added that when stripping out the contribution from China, the beat over expectations was only modest. Within the note, Bernstein called server trends "very solid" and observed that client share gains remain in place. Yet the firm emphasized that near-term AI-related revenue inflections have not been prominent outside China, and that the timing and magnitude of the OpenAI-related ramp "remains a bit up for debate."
Bernstein also drew attention to several near-term headwinds. The research team cited the potential for client-driven softness in the second half of the year and persistent headwinds in the gaming console market. Another area of concern was operating expenses: the firm wrote that "execution against spending guidance has been lackluster," pointing to higher operating expense levels as a notable risk for future margin performance.
The analyst's new $235 price target is derived from applying a 25x multiple to fiscal year 2027 earnings per share of $9.25. Rasgon characterized AMD as "the most expensive of the AI names" at 35 times current earnings, and added, "We don’t hate it, but would rather play elsewhere," signaling relative valuation caution despite the company's growth metrics.
Other recent broker activity illustrates the split in sentiment toward AMD. The company reported strong fourth-quarter 2025 results, with adjusted earnings per share of $1.53 versus analysts' expectations of $1.32, and revenue of $10.3 billion compared with forecasts of $9.64 billion. In response to the quarterly report, Piper Sandler maintained an Overweight rating and set a $300 price target. KeyBanc Capital Markets also raised its price objective to $300, citing robust data center growth as a core driver. By contrast, Goldman Sachs kept a Neutral rating and a $210 price target, noting that while revenue and guidance were encouraging, higher-than-expected operating expenses could weigh on the stock's performance.
Taken together, the updates reflect a marketplace divided between optimism rooted in accelerating data center and client demand, and caution centered on expense execution, the timing of AI-related revenue inflections outside China, and cyclicality in key end markets such as consoles. Investors and market participants weighing AMD will need to balance visible growth with these execution and demand uncertainties.