Key insights
- Stifel raised its AMD price target to $320, citing AI demand from Meta and OpenAI. This positive outlook is supported by AMD's CPU ramp and upcoming product launches (MI450, Helios). Meta's financial strength and AI-driven ad growth further reinforce the bullish sentiment. This suggests continued growth in the semiconductor sector, particularly for companies positioned to benefit from AI infrastructure demand.
Investing.com - Stifel raised its price target on Advanced Micro Devices stock (NASDAQ:AMD) to $320 from $280 while maintaining a Buy rating on the shares.
The firm cited multi-gigawatt strategic commitments from Meta and OpenAI as factors supporting its outlook on the semiconductor company. Meta, with a market capitalization of $1.75 trillion and revenue growth of 22% over the last twelve months, represents a significant customer for AMD’s AI infrastructure. According to InvestingPro, Meta operates with impressive gross profit margins of 82% and maintains a strong financial position with liquid assets exceeding short-term obligations.
Stifel noted a counterseasonal CPU ramp at AMD, though the analyst pointed to worsening supply constraints affecting the industry.
The firm also referenced the upcoming launch of AMD’s MI450 and Helios products as contributing to its positive view.
Stifel said these factors represent incremental tailwinds toward management’s longer-term earnings per share target of more than $20.
In other recent news, Meta Platforms Inc. is set to initiate layoffs affecting approximately 10% of its global workforce, equating to nearly 8,000 employees. These layoffs are scheduled to begin on May 20, with additional cuts anticipated later in the year, although specific details are yet to be finalized. On the financial front, TD Cowen has reiterated a Buy rating for Meta, maintaining a price target of $820, driven by expectations of accelerating advertising growth and AI-driven margin compression. Piper Sandler also reaffirmed an Overweight rating with a price target of $880, highlighting the company’s continued momentum in advertising, particularly with an increase in cost-per-thousand impressions. Furthermore, Deutsche Bank reiterated a Buy rating and set a price target of $920, citing robust returns from Meta’s AI investments in advertising, which contributed to a 6.0% growth in ad spend during the first quarter of 2026. These developments underscore a period of significant activity for Meta, marked by workforce restructuring and positive analyst sentiment on its advertising and AI strategies.
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