TD Cowen cut its price target on Advanced Micro Devices (NASDAQ:AMD) from $135 to $110 while reaffirming a Buy rating, as the chipmaker contends with a mix of company-specific challenges, sector-wide pessimism in computing, and uncertainty around trade tariffs.
The firm noted that AMD’s subdued data center GPU guidance for the first half of 2025 has reset investor expectations, with attention now turning to the upcoming MI355X launch slated for mid-year. While there is clear momentum in AMD’s client segment, the market’s focus remains fixed on its Instinct product line, limiting near-term stock performance.
Trading at approximately 13 times estimated 2026 earnings, TD Cowen sees room for upside should AMD gain meaningful traction in the data center GPU space. However, given the uncertain macroeconomic climate and tariff concerns, the firm has slightly adjusted its estimates but is maintaining a “wait and see” stance on major revisions.
