Overview
Cantor Fitzgerald has reiterated an Overweight recommendation on Advanced Micro Devices (NASDAQ:AMD) and kept its price target at $350.00 as the company prepares to report quarterly results tomorrow. At the time of the note, AMD was trading at $236.73, down about 5.8% over the prior week but still more than 104% higher year-over-year. Analyst targets collected by InvestingPro range from $210 to $380.
Quarterly expectations and guidance
The research firm expects AMD to deliver a modest beat for the December quarter and then raise guidance for the March quarter - an outlook Cantor Fitzgerald contrasts with recent results from Intel. The firm explicitly notes that AMD does not appear to be facing the wafer transition issues that have pressured Intel's guidance for Client and Server products.
Supporting this positive stance, InvestingPro data referenced by the research firm shows AMD generated 31.83% revenue growth over the last twelve months.
Data Center outlook
Cantor Fitzgerald anticipates strength across AMD's Data Center business, encompassing both server CPUs and GPUs. The note projects continued robust demand for server CPUs, driven in part by agentic AI workloads and by host servers that support accelerated compute. For Data Center GPUs, the firm expects sustained expansion and flags the upcoming MI400-series product launch as a catalyst in the quarters ahead.
Client and SKU strategy
The research note acknowledges potential softness in Client unit volumes due to supply constraints, but it underscores that AMD has been prioritizing higher-end SKUs. That prioritization is expected to lift average selling prices across both Client and Server segments, in Cantor Fitzgerald's view.
Capacity and competitive dynamics
Market capitalization for AMD stands at $385.41 billion, and the stock was trading at a premium price-to-earnings ratio of 124, reflecting elevated growth expectations embedded in the valuation. Cantor Fitzgerald adds that AMD could gain a competitive advantage from Intel's transition challenges if AMD can secure sufficient manufacturing capacity from Taiwan Semiconductor Manufacturing Company (TSMC).
Other analyst actions and industry context
Several other brokerages and research firms have also moved on AMD or related supply-chain names recently. Piper Sandler raised its price target for AMD to $300, citing an expected $200 million revenue upside for the December 2025 quarter and an uplift in earnings per share of at least $0.02 versus consensus. KeyBanc retained an Overweight rating with a $270 price target, pointing to strong server-CPU demand and the potential for price increases. Wells Fargo reiterated an Overweight rating and set a $345 price target despite reports of potential delays in AMD's MI450-series chips.
Independent analysis from Aletheia questioned whether some forecasts for AMD's server CPU business may be conservative, with a projection of 42% year-over-year revenue growth to $14.5 billion for fiscal 2026. Separately, BofA Securities raised its price target on Sanmina to $190, reflecting analyst focus on revenue tied to AMD rack builds.
Near-term catalysts and considerations
Key near-term items that Cantor Fitzgerald highlights include AMD's upcoming earnings release and any guidance the company provides for the March quarter, the pace of MI400-series adoption in data centers, and the ability to secure TSMC manufacturing capacity. The firm views these elements as central to whether AMD can capitalize on the demand environment and Intel's transitional headwinds.
Conclusion
Cantor Fitzgerald's reaffirmation of an Overweight rating and a $350 price target rests on expected outperformance on the December quarter, stronger guidance for the March quarter, robust Data Center demand across CPUs and GPUs, SKU prioritization that should support ASPs, and the strategic importance of foundry capacity at TSMC. Multiple other analysts have also signaled confidence in AMD's server opportunity, while noting varying perspectives on product timing and upside magnitude.