AMD Stock Surges as Susquehanna Sets $210 Price Target

Advanced Micro Devices (AMD) is currently that bright kid who’s not only doing the best on the test, but also winning the teacher over, helping others with the test, and leading the smartest club. With Susquehanna raising its price target on AMD from $135 to $210, just before the company’s Q2 earnings, it has got investors rubbing their hands in delight, and perhaps the investors are in awe. 

AMD is having a strong rally, rising 11.84% for the week to $177.44. They are just an inch away from its 52-week high of $182.31. This hints that something special is cooking. It may be the AI chip story, the renewed optimism for China exports, or simply some good momentum of the earnings, but AMD’s name is ringing out across trading floors louder than ever before.

Susquehanna continued to fuel the positive fire on Wednesday by boosting its price target to $210 from $135 while maintaining its Positive rating. The timing couldn’t be perfect, as AMD’s Q2 earnings will come out on August 5. InvestingPro data shows that AMD is trading higher than its Fair Value, but the stock’s momentum seems almost steadfast. 

With demand for AI taking off, the latest developments from Washington may change the entire equation for AMD’s revenue trajectory in 2025, maybe even in the company’s favor.

AMD’s Second Chance due to AI Chip Export Policy

At the heart of such confidence is a potentially game changing development, which is the U.S government’s move to reconsider AMD’s application for an export license to sell MI308 AI chips to China. This reconsideration paves the way for a partial reversal of the earlier anticipated $1.5 billion revenue loss due to export restrictions. This was a huge hit that had been severely causing damage to the market sentiment.

Susquehanna now sees AMD potentially can recover as much as $800 million in revenue during the second half of 2025. The more appealing thing is that a lot of the MI308 inventory previously destined for a downgrade can now be sold at little cost but with substantial gross margins, giving the company’s balance sheet a brand new life. The company increased its whole year’s gross margin target from 51.8% to 52.8% and raised its revenue forecast for the MI300 series to more than $7 billion.

Solid Fundamentals Support

AMD isn’t just surfing on policy tailwinds, rather it has thorough fundamentals to support the anticipation. The better than expected sales of PCs, along with the on-going EPYC data center CPU market share gains, lay the ground for a solid Q2 report. 24% revenue growth expected in FY2025 and maintained gross margins of around 53.58% provide AMD with earnings strength it must have to compete with peers such as Intel and Nvidia.

Investment banks are falling in line with this momentum. Morgan Stanley, BofA Securities, Citi, Erste Group, and Bernstein have all raised their price targets, which reflects an escalating analyst optimism. These increases also reflect new optimism surrounding AI acceleration and server demand that has real business potential.

Key Risks to Focus on Before Earnings

While the overall picture seems absolutely bullish, some cautionary points must be taken into consideration. First, AMD will need to deliver on both revenue and forward guidance to sustain the upward momentum. Second, the decision regarding China exports is still under review and may yet be knocked by geopolitical headwinds. Finally, constant pressure on prices in the consumer CPU space and strong competition in AI chips may have a negative impact on the future margins. 

With several analysts having increased targets and market-share gains in high-growth areas, AMD appears all set for additional upside, particularly if the Q2 call is a positive one. While AMD’s recent run is remarkable, the actual story is about its strategic revival. In the face of export restrictions, ruthless AI competition, and economic turbulence, AMD’s comeback represents what takes place when technical innovation, policy synchronization, and worldwide demands align. 

However, optimism must not cloud judgment, there still remains a review, and the broader chip market is still uncertain. AMD’s aggressive MI300 series approach, complemented by high-margin AI accelerators and a diversified client base, offers a rare combination of resilience and flexibility. This isn’t speculative hope, rather it’s a strategy that is catching up with policy winds, and the market is accurately paying attention. 

Despite this, AMD is not only planning to compete in the AI race, but as a legitimate competitor for the ultimate dominance. If Q2 earnings confirms the analysts’ expectations, Susquehanna’s $210 may be the only place to start a much larger move. Shareholders need to pay attention, not because AMD may surprise them, but because it’s already demonstrating it can.