08:40 AM EDT, 05/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $125 from $140 on a P/E of 21.2x our 2026 EPS estimate of $5.90, below historical. We reduce our 2025 EPS estimate to $4.17 from $4.65 and 2026 to $5.90 from $6.10. While AMD faces headwinds from tariff uncertainty and regulatory changes, including the recently implemented export controls for Instinct MI308X shipments to China, U.S. customer cloud capex budgets remain intact. We also like share gains with its latest generation of Zen 5 EPYC and Ryzen CPUs as well as momentum for its Radeon GPUs. That said, we expect China export restrictions to reduce 2025 revenue by $1.5B ($700M in Q2 and $800M in Q3), but expect server GPU growth to accelerate in Q3/Q4 (will be down in Q2). The completed ZT deal sets up AMD to shift to rack server systems in 2026 when it ramps up its MI400, which we think will help close the competitive gap and drive upside to data center revenue. The MI350 in the second half will also support an expanded set of customers (e.g., Oracle) and AI workloads.