RBC Capital has maintained its Sector Perform rating and a $230.00 price target on Advanced Micro Devices (AMD) after reviewing the company’s fourth-quarter 2025 results. The target sits close to AMD’s prevailing market price of $208.42, while analyst targets across the Street range from $210 to $380.
RBC said the company’s quarterly results were generally consistent with the bank’s preview, though the reported numbers were helped by China AI revenue that was not included in RBC’s original model. Over the last twelve months AMD recorded revenue of $32.03 billion, representing growth of 31.83%.
Operationally, AMD’s Data Center segment displayed notable strength driven by server CPU demand and share gains. AI GPU sales also rose on a quarter-to-quarter basis even when the China-related revenue is excluded, the analyst noted. The company continues to sustain a robust gross profit margin of 51.46%, underlining its competitive position within the semiconductor industry.
Management signaled confidence about continuing server CPU growth through the year and reiterated prior timing for product ramps, including MI4xx and OpenAI-related offerings, that are expected in the second half of 2026. Street analysts project AMD’s EPS will reach $3.97 for fiscal 2025, with revenue growth forecast at 32%.
A separate Pro analysis referenced by analysts suggests AMD may be slightly undervalued at current market levels and highlights additional strategic and financial observations that are available in an expanded Pro Research Report and accompanying ProTips under a subscription service.
On modeling, RBC slightly raised its estimates for AMD, but noted higher operating expenses offset some of the incremental revenue. The firm also pointed out that AMD trades at roughly a 40% premium to NVIDIA, a gap that reduces the number of meaningful catalysts in the near term until OpenAI starts to ramp in volume in the fourth quarter of 2026. That relative valuation is reflected in AMD’s elevated P/E ratio of 126.66 and an EV/EBITDA multiple of 64.55.
In other corporate developments, AMD reported quarterly earnings that were largely in line with expectations and offered guidance for the upcoming quarter that was slightly above consensus at $9.8 billion versus an estimated $9.4 billion. Despite that guidance beat, AMD’s share price fell by about 8% following the fourth-quarter results amid investor concerns over concentration of revenue tied to the OpenAI project, a view noted by Raymond James.
Analyst sentiment across the market remains mixed. Rosenblatt Securities reiterated a Buy rating and set a $300 price target, citing strong demand in the data center and market share gains. Mizuho raised its price target to $275 while maintaining an Outperform rating, pointing to higher expenses as a consideration. Baird maintained its Outperform view, referencing positive momentum in AI-related segments and expected share gains in the Client business. Northland also affirmed an Outperform rating with a $260 price target, noting healthy momentum for AMD’s AI products and resilience in PC demand.
Overall, the post-earnings landscape for AMD features a combination of encouraging operational trends and persistent valuation and concentration risks. Analysts’ divergent price targets and ratings illustrate a balance between optimism about data-center traction and caution about expense pressures and the timing of large-scale OpenAI volume ramps.