Northland has reaffirmed an Outperform rating on Advanced Micro Devices Inc. and kept a $260.00 price target following the company's most recent quarterly report. The $260 target sits between the analyst range high of $380 and low of $210, with the shares trading at $242.11 per InvestingPro data.
In its update, Northland pointed to a quarter that came in strongly and guidance that outpaced consensus expectations. The firm highlighted accelerating momentum in AMD's artificial intelligence product lineup together with continued healthy demand in the personal computer market.
InvestingPro data cited by Northland shows that AMD's revenue has increased 31.83% over the last twelve months, while analysts are forecasting roughly 32% revenue growth for fiscal 2025. Northland also noted the chipmaker's expanding footprint in the AI ecosystem, reporting that AMD is now working with eight out of the top ten AI companies.
On a market-value basis, AMD sits with a market capitalization of $394.17 billion. Despite Northland's positive stance, the research firm observed that market expectations had largely moved ahead of the company's reported results.
Northland flagged a specific uncertainty around the ability of Oracle/OpenAI to finance further expansion - a factor it considers an overhang on AMD's outlook. The firm's calendar year 2027 non-GAAP earnings estimate for AMD is $7.40 per share on $50 billion in revenue.
Those projections are materially below the consensus figures Northland referenced, which call for $10.31 in earnings per share on $62.7 billion of revenue in calendar year 2027. The firm maintained its Outperform rating while explicitly taking a more conservative long-term view than the street consensus.
Valuation metrics from InvestingPro included in Northland's review show AMD trading at a price-to-earnings ratio of 126.66 and a PEG ratio of 1.66, metrics the firm said imply the shares are trading above their fair value under current assumptions.
Other brokerages made follow-on moves after AMD's quarterly disclosure. Rosenblatt Securities reiterated a Buy rating with a $300 price target, citing gains in the company's data-center share. Evercore ISI raised its price target to $328 while keeping an Outperform rating and characterized the quarter as a "beat/raise". Bank of America increased its price target to $280 and described AMD as a credible alternative to Nvidia in the AI GPU market.
At the same time, Raymond James trimmed its price target to $365, attributing the reduction to concerns about GPU sales into China, but still described the quarter as solid. Loop Capital maintained a Buy rating and $310 price target, referencing AMD's fourth-quarter 2025 results and guidance for the first quarter of 2026.
Taken together, these analyst actions reflect broad confidence among brokerage desks in AMD's near-term revenue trajectory, especially in data-center demand and AI-related products, while some firms are adjusting longer-term assumptions and regional sales risks.
Key points
- Northland reiterates Outperform and a $260 price target after a quarter with revenue growth and guidance above consensus - impacts semiconductors and AI-related markets.
- AMD's revenue rose 31.83% over the last 12 months, with analysts projecting ~32% growth for fiscal 2025 - relevant to investors focused on data-center and PC demand trends.
- Several other firms updated targets and ratings, ranging from Buy to Outperform, reflecting confidence in data-center momentum alongside targeted regional and financing concerns.
Risks and uncertainties
- Financing risk tied to Oracle/OpenAI expansion - Northland called this an overhang, which could affect AI-related spending and demand for AMD's AI products.
- Geographic and customer concentration risk - Raymond James cited worries about GPU sales into China, introducing potential regional market risks for semiconductor revenue.
- Valuation premium - InvestingPro metrics show AMD trading at a high P/E and a PEG that implies shares are above fair value, leaving the stock sensitive to changes in growth expectations.
These points and risks speak to sectors including semiconductors, data centers, cloud AI services, and personal computing. Analysts' differing long-term models underscore the market's sensitivity to both customer financing and regional demand dynamics.