AMD (AMD) Gets Citi Price Target Hike Ahead of Q2 Earnings

Citi raised its price target on Advanced Micro Devices (AMD, Financials) to $145 from $120 ahead of the company's second-quarter earnings report due August 5. Analyst Christopher Danely maintained a Neutral rating, signaling cautious optimism despite higher estimates.

Wall Street expects AMD to report earnings per share of $0.49 on $7.41 billion in revenue. Danely said demand for chips remains solid and companies are starting to rebuild inventories, which led him to revise his forecast.

While the Neutral rating suggests limited short-term upside, the price target hike indicates Danely sees potential for a positive surprise if AMD beats expectations. The broader chip industry is slowly recovering, and AMD appears positioned to benefit from stabilizing market conditions.

Citi had previously warned of headwinds from tariffs and global risk, but those concerns have not materialized, according to Danely. He sees improving fundamentals and restocking as signals of momentum returning to the sector.

Investors will be watching AMD's earnings closely to see if the company can outperform expectations and ride the wave of a semiconductor rebound.