Investing.com — Wells Fargo said it would be a buyer on the weakness in Advanced Micro Devices (NASDAQ:AMD) stock, believing the premarket pullback is a buying opportunity.
The firm reiterated its Overweight rating and $185 price target, noting growing confidence in AMD’s data center GPU roadmap and strong momentum in client and server segments.
“[We] view 2Q25 results and 3Q25 guide as positive,” analysts wrote, highlighting rising conviction in the second-half ramp of the MI355X chip.
Notably, the firm stressed that AMD’s third-quarter guidance does not include any sales of the MI308X to China, which remains subject to licensing approval.
Despite a 13% year-over-year decline in second-quarter data center GPU revenue to an estimated $915 million, mainly due to the China ban, Wells Fargo remains bullish on the product mix shift.
“We remain positive on the MI355X ramp ahead—diversifying customer base + higher ASPs,” the firm said.
AMD also showed robust server CPU performance, with revenue growing 30% year-over-year to around $2.2 billion, significantly outpacing Intel (NASDAQ:INTC), which posted just 4% growth in its comparable unit.
In client computing, AMD reported revenue of $3.62 billion, a 69% jump year-over-year, beating both Wells Fargo and Street estimates. Client CPU revenue rose 67%, with ASPs up 42%.
AMD guided third-quarter revenue to $8.4 billion to $9.0 billion, implying a midpoint 28% increase from a year earlier, with gross margins around 54%.
Wells Fargo left its long-term estimates largely unchanged and declared that they are “Buyers on weakness.”
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