AMD Stock Price Target Raised to $140 by Piper Sandler Amid Strong AI Momentum

June 16, 2025 | By Shillon teer result

Piper Sandler has increased its price target for Advanced Micro Devices (NASDAQ: AMD) from $125 to $140, reaffirming its Overweight rating on the semiconductor giant. This bullish revision follows AMD’s recent product developments and positive financial signals, positioning the company as a stronger competitor in the rapidly evolving AI chip market.

As of the latest close, AMD stock is trading at $121.55, reflecting consistent investor confidence. The company now commands a market capitalization of approximately $197 billion. According to InvestingPro, AMD’s current ratio of 2.8 highlights its robust liquidity position, indicating strong financial health.

Why Piper Sandler Raised AMD’s Target Price

The key reason behind Piper Sandler’s optimistic forecast is AMD’s recent product launches, most notably the Helios rack. The research firm described the Helios rack as “pivotal for AMD Instinct growth” in the GPU (graphics processing unit) segment, a crucial area for AI and high-performance computing.

Additionally, the firm expects AMD’s GPU business to rebound significantly in Q4 2025, as the company moves past challenges tied to China-related charges.

Insights came from AMD’s quarterly pre-close call with investors held last Friday, where the company hinted at improvements in its client segment — the largest revenue contributor — suggesting rising demand and pull-ins in that division.

AMD’s Position in the AI Race

AMD is currently navigating a highly competitive landscape dominated by AI chip demand. The company’s efforts to expand its footprint in AI have resulted in volatile but upward-trending stock performance, with a beta of 1.99, indicating higher-than-average volatility linked to growth opportunities.

The spotlight on AMD intensified after its recent AI product launch event, which led to multiple analyst updates:

Benchmark reiterated its Buy rating and set a $170 price target, citing the launch of the Instinct MI350 Series chips. These chips are now in production, with volume revenue expected in Q3 2025.
UBS also maintained a Buy rating, noting that Amazon (NASDAQ: AMZN) has become a customer — a significant endorsement that strengthens AMD’s presence in the AI inference market.
TD Cowen echoed positive sentiment, highlighting AMD’s advancements with its MI350 chips and the upcoming MI400 “Helios” series.

Mixed Views: Not All Analysts Fully Convinced

While many firms are optimistic, not all analysts are fully convinced. Bernstein maintained a Market Perform rating, noting that AMD’s AI event, though informative, lacked major new customer announcements. However, it acknowledged AMD’s growing focus on the AI accelerator market.

Stifel continued to support a Buy rating, pointing out AMD’s emphasis on inference workloads and its ambitious goal to match NVIDIA’s (NASDAQ: NVDA) GPU release cycle by 2027.

Outlook: AMD’s AI Strategy Gaining Traction

The consensus across most analyst firms is that AMD is making the right strategic moves to establish itself as a long-term player in the AI and high-performance computing ecosystem. Its investment in next-gen GPU technologies, expansion of customer base, and steady financial health suggest a positive growth trajectory.

With renewed investor interest and bullish outlooks from major brokerage houses, AMD stock remains one to watch in 2025 — especially as demand for AI infrastructure continues to accelerate globally.