Cowen analyst Matthew Ramsay reiterated his outperform rating for the Santa Clara, Calif., company and raised his price target to $60 from $47.
"With [the] shares up 65% since our last preview, we are increasingly both confident (in fundamentals) and nervous (on valuation)," Ramsay said in a note to investors.
Ramsay said he noticed a tangible change in investor tone since the third-quarter earnings call and recent meetings with CEO Lisa Su.
He added that he remained "pleasantly surprised by the long-term nature of most of our investor conversations."
"Our queries continue to shift to 'when', not 'if,' in terms of share gains and earnings-per-share/free-cash-flow growth, as investors largely no longer question whether or not AMD will gain material x86 share or deliver upon its road maps," Ramsey said.
Instead, he said, they are trying "to better understand the cadence, magnitude and competitive road-map positioning as Intel (INTC) - Get Report experiences 14-nanometer supply constraints and road-map changes."
Ramsay still sees a sizable upside to Wall Street estimates, "driven by share gains across server/DT/NB markets and an under-model console cycle."
Deutsche Bank analyst Ross Seymore maintained his hold rating on AMD but raised his price target to $40 from $29.
"We fully expect AMD’s strong product/strategic execution to continue in 2020 and 2021," he wrote.
"[But] with tailwinds from Intel's missteps (10-nanometer delays, supply shortages, etc.) likely to lessen, competitive intensity likely to rise (from Intel and Nvidia (NVDA) - Get Report), and AMD shares trading at nearly 40 times our pro-forma 2021 estimated earnings per share, we see upside potential to both our estimates and the share price as being challenging."
Oppenheimer analyst Rick Schafer, who rates AMD perform, said, "We remain skeptical of AMD's ability to deliver a profitable long-term business model as the second horse in the secularly declining PC market."
"We see financially and technologically stronger Intel and Nvidia strengthening their positions in both central processing unit and graphics processing unit, challenging AMD's revenue and gross-margin trajectory," he wrote.
AMD shares at last check were up 0.6% at $51.21.