TD Cowen has maintained a Buy recommendation on Advanced Micro Devices (AMD) and kept its price target at $290, signaling confidence in the company’s strategic direction despite what the firm described as a "noisy quarter." The price target sits above recent trading levels and remains below some of the loftier analyst projections while reflecting faith in AMD’s product roadmap.
The research note highlighted a quarter that produced mixed results, framed against a turbulent environment for both data center and personal computer markets. TD Cowen described offsetting positives and negatives in AMD’s recent performance but emphasized that these near-term swings do not alter the longer-term investment thesis tied to the company’s AI-focused GPU roadmap.
At the center of TD Cowen’s rationale is the anticipated MI450/Helios product launch, currently slated for the second half of 2026. The firm reiterated that the MI450 rollout is a primary justification for maintaining the Buy rating and the $290 target, arguing the product should materially influence AMD’s trajectory in AI and data center computing.
Supporting TD Cowen’s bullish stance, the research highlighted ongoing momentum in AMD’s data center GPU and server CPU businesses. AMD’s most recent trailing-twelve-month revenue climbed 31.8% to $32.03 billion, a cited indicator of the company’s growth amid the industry transition toward AI workloads.
Additional market data cited in the note indicates a very strong one-year stock return of 102.6% and a high price-to-earnings ratio of 126.7, alongside an assessment that AMD is modestly undervalued relative to a fair value metric. These data points inform the firm’s view of the equity’s current valuation and upside potential.
On the corporate reporting front, AMD’s fourth-quarter 2025 results produced a modest beat-and-raise, aligning broadly with analyst expectations. Management provided guidance for the upcoming quarter at $9.8 billion, slightly ahead of a $9.4 billion consensus figure referenced in the research, a dynamic that several analysts tied to AI-related revenue strength.
Other brokerages and research shops issued commentary and price targets reflecting a range of perspectives. RBC Capital retained a $230 target and noted that China AI revenue positively affected the quarter. Baird reiterated an Outperform rating with a $300 target, pointing to growth potential in AMD’s AI-facing businesses and healthy demand for x86 server CPUs. Mizuho trimmed its price target to $275 from $285, citing higher expense levels but kept an Outperform stance. Northland also maintained an Outperform rating with a $260 target and highlighted momentum across AMD’s AI product stack and the personal computer segment.
Not all commentary was uniformly optimistic. Raymond James flagged mixed investor sentiment and raised concerns about AMD’s revenue concentration tied to a specific AI project. In response to such concerns, AMD’s management reiterated that the MI450 program is progressing and reported traction with new customers.
TD Cowen’s overall position can be summarized as cautiously constructive: the firm acknowledged short-term volatility and a patchwork quarter of results but concluded these do not materially alter the multi-quarter growth case premised on next-generation GPU and server CPU launches.
Contextual takeaway - For investors focused on AI infrastructure and data center dynamics, the MI450 launch represents the principal near-term catalyst cited across research notes. For markets tied to semiconductors and enterprise compute spending, the combination of robust recent revenue growth and bullish analyst targets underscores continued attention on AMD’s product execution and customer adoption.