Shares of chipmaker Advanced Micro Devices (AMD) are down on Monday despite positive analyst comments. Indeed, five-star Northland analyst Gus Richard remains bullish and named AMD one of his “top picks for 2025.” He reiterated a Buy rating with a $175 price target due to AMD’s roadmap and cost advantages in AI GPUs, server CPUs, and PC clients.
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Although AMD has struggled with supply chain issues that have negatively impacted its ability to compete and capture market share, Richard forecasts that AMD’s AI revenue will rise 83% in 2025 to $9.5 billion, with its new MI325X chip competing effectively against Nvidia’s (NVDA) H200. Non-AI data center revenue is also expected to grow by 26% as AMD’s Turin chips outperform Intel’s (INTC) Granite Rapids in key workloads.
Richard also sees a promising PC-upgrade cycle driven by Microsoft (MSFT) ending support for Windows 10, which could lead to the replacement of 40% of the global PC base within 18 months. This shift could push AMD’s client revenue beyond $9 billion in 2025 – up from the current estimate of $7.9 billion. The analyst believes that this is an often-overlooked part of AMD’s AI-driven growth strategy. Interestingly, It’s worth noting that Richard has enjoyed a 73% success rate on AMD stock, with an average return of 26.6% per rating.
Is AMD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMD stock based on 23 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 12% decline in its share price over the past year, the average AMD price target of $184.52 per share implies 50.22% upside potential.
