- AMD divests ZT Systems manufacturing arm for $3 billion to strengthen its position against Nvidia.
- Analysts predict a 13.44% potential upside with a one-year average target price of $128.90.
- GuruFocus' GF Value suggests a 43.06% upside potential, indicating the stock's fair value could be $162.56.
Advanced Micro Devices (AMD, Financial) has taken a strategic step by divesting its manufacturing division of ZT Systems to Sanmina for a noteworthy $3 billion. This move, while retaining its engineering team, is a calculated effort to enhance AMD's strategic positioning and competitive edge in the highly competitive data center GPU market, where it squares off against industry leader Nvidia. The transaction is anticipated to reach completion by the end of 2025.
Wall Street Analysts Forecast
Analyzing insight from 41 Wall Street analysts, Advanced Micro Devices Inc (AMD, Financial) carries an average target price of $128.90. The spectrum of forecasts includes a high of $200.00 and a low of $75.00. This average target points to an anticipated upside of 13.44% from its current trading price of $113.63. For those seeking more granular forecast data, a visit to the Advanced Micro Devices Inc (AMD) Forecast page is recommended.
The consensus recommendation among 51 brokerage firms places Advanced Micro Devices Inc (AMD, Financial) at an average brokerage rating of 2.2, marking a sentiment of "Outperform." The rating scale ranges from 1, indicating a Strong Buy, to 5, suggesting a Sell.
Further, GuruFocus estimates project a GF Value for Advanced Micro Devices Inc (AMD, Financial) at $162.56 within one year, estimating a significant upside of 43.06% from its current price of $113.6292. The GF Value represents GuruFocus' calculated fair value of the stock, derived from historical trading multiples, business growth trajectories, and future performance forecasts. To explore more in-depth data, visit the Advanced Micro Devices Inc (AMD) Summary page.
