Analysts set a new $725 target for AMD shares, citing growth potential despite a 73x forward P/E multiple.
KeyBanc raised its price target for Advanced Micro Devices (NASDAQ: AMD) to $725 per share, up from prior levels, following a 140% surge in the stock this year. AMD currently trades near $510, reflecting strong investor interest amid the AI chip market expansion.
The new target implies significant upside but contrasts with AMD’s fundamentals, including a forward P/E ratio of 73, far above Nvidia’s 23.6. AMD holds a small share of the AI accelerator market, where Nvidia remains dominant. Historically, AMD’s profit margins have not exceeded 27%, compared to Nvidia’s higher levels.
The move highlights Wall Street’s divergent views on AMD’s growth trajectory, though valuations suggest elevated expectations for future earnings expansion.