AMD Stock Moves Higher – Analysts Raise, China Chip Sales Resume

Advanced Micro Devices (NASDAQ:AMD) is riding a wave of bullish sentiment, surging over 25% in the past month as the resumption of AI chip sales to China and a series of analyst upgrades fuel investor enthusiasm. As of July 17, 2025, AMD closed at $160.08, up 2.87% for the day, and is trading at $161.62 in pre-market, gaining an additional 0.96%. The stock's recent performance reflects growing confidence in AMD's strategic direction, particularly in the burgeoning AI and data center markets, as investors look ahead to the company's upcoming earnings report on August 5th.

The catalyst for this recent rally is twofold. First, a shift in U.S. Commerce Department policy has paved the way for AMD to resume shipments of its MI308 AI chips to China. This reversal of export restrictions is a significant win for AMD, potentially unlocking a substantial revenue stream previously hampered by geopolitical tensions. AMD anticipates commencing shipments as soon as the necessary licenses are approved, a move that could offset previously expected charges of up to $800 million.

Second, AMD's strong performance and promising outlook have prompted leading analysts to revise their price targets upward. Wells Fargo, maintaining an “Overweight” rating, significantly increased its price target from $120 to $185. This bullish assessment is predicated on expectations of continued strength in AMD's data center segment and the company's successful execution of its product roadmap.

Similarly, Mizuho raised its price target from $152 to $175, citing anticipated growth in AI accelerator demand and a better-than-expected ramp-up of AMD's MI355X product in the latter half of 2025. These upgrades contribute to a current average consensus price target of approximately $147, with a majority of analysts rating AMD as a “Buy” or “Strong Buy.”

A look at AMD's financials reveals a company with strong growth potential. The company boasts a market capitalization of $259.6 billion, with revenue of $27.75 billion and net income of $2.23 billion. While its P/E ratio of 116.87 (TTM) is elevated, it reflects the high growth expectations embedded in the stock price. Compared to its peers, AMD trades at a lower price-to-earnings multiple than Nvidia but higher than Intel (INTC), while also maintaining a healthier balance sheet than Intel.

The near-term focus for investors will be AMD's Q2 earnings report on August 5th. The company's performance in this quarter will be crucial in validating the recent surge in stock price and justifying the optimistic analyst forecasts. Key factors to watch include the impact of renewed China AI chip shipments, progress in gaining market share in the data center market, and overall financial guidance for the remainder of the year.