Wall Street analysts are split on chipmaker Advanced Micro Devices (AMD) after the stock surged about 64% in April and more than tripled over the past year. For instance, Northland Capital’s five-star rated
Gus Richard downgraded the stock to Hold with a $260 target after warning that the rally has outpaced fundamentals and pointing to competition from Nvidia (NVDA). At the same time, other firms remain bullish. Susquehanna, led by five-star analyst Christopher Rolland, raised its target to $375, thanks to strong demand for EPYC chips and future AI products.
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Forget margin or options. Here's how the pros trade NVDAThe rally itself was driven in part by a surprise joint announcement with Intel (INTC), where the two companies introduced AI Compute Extensions for x86. The new instruction set is designed to increase AI compute density by 16 times compared to AVX10, and integration with frameworks like PyTorch and TensorFlow is already underway. Strong results from Intel, which highlighted rising demand in data centers and AI infrastructure, also helped AMD’s stock.
Nevertheless, attention will now shift to AMD’s May 5 earnings report. Analysts expect revenue of about $9.88 billion, up 32% year-over-year, and earnings of $1.28 per share versus $0.96 last year. Investors will be focused on data center growth and how quickly the MI350 chip ramps, especially with management guiding for roughly $17 billion in GPU revenue by 2026. Beyond earnings, AMD’s “Advancing AI 2026” event on July 23 in San Francisco is expected to introduce MI450 accelerators and new EPYC processors, which will potentially be built on 2-nanometer technology.
Is AMD Stock a Good Buy?
In addition, analysts as a whole have a Moderate Buy consensus rating on AMD stock based on 19 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $300.04 per share implies 17.3% downside risk.
