Chipmaker Advanced Micro Devices (AMD) has earned a “Perfect 10” Smart Score from TipRanks. This AI-powered system combines analyst ratings, insider activity, technical indicators, and fundamental data to rate stocks from 1 to 10. A score of 10 is the highest possible and suggests the stock is likely to outperform the market.
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The top score reflects analyst support, hedge fund buying, bullish news sentiment, and positive technical signals for AMD stock. Analysts see further upside, with an average price target of $184.74, implying about 23% potential gains from current levels.
AI Chip Launches Drive Growth Outlook
AMD is ramping up its push into artificial intelligence with the rollout of its Instinct MI350 GPUs, which are gaining traction with major cloud providers. AMD’s next-generation MI400 series, set to launch in 2026, is expected to challenge Nvidia (NVDA) in the high-performance AI accelerator market.
Analysts estimate that AI-related chips could generate more than $20 billion in revenue by 2028, making this one of AMD’s most important growth engines.
Institutional Support and Technical Signals Boost Confidence
The Perfect 10 score is also supported by strong institutional interest. Hedge funds added nearly 2.9 million AMD shares last quarter, reflecting growing conviction from large investors.
On the technical side, momentum remains positive. The Williams %R indicator, which measures whether a stock is overbought or oversold, currently shows a Buy signal for AMD, suggesting the stock still has room to climb.
Consumer GPU Weakness Weighs on Near-Term Performance
Despite its momentum in AI, AMD faces challenges in its traditional graphics business. Nvidia continues to dominate the consumer GPU market with more than 90% share, leaving AMD with only a small slice.
Adoption of AMD’s new RX 9000 series cards has been slow, and pricing pressures have hurt sales. This remains a weak spot for AMD and could limit near-term upside even as the AI story strengthens.
MegaPod Platform Expands AI Infrastructure Plans
Looking ahead, AMD is working on a next-generation platform called the MI500 MegaPod, which combines 256 Instinct GPUs with Verano CPUs. Expected around 2027, the system is designed for large-scale AI operations and could help AMD win more enterprise and hyperscaler business.
This move positions the company to compete directly with Nvidia in the AI infrastructure space.
Is AMD Stock a Buy or Sell Now?
Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 25 Buys and 11 Holds. The average AMD stock price target of $184.74 indicates 23.02% upside potential from current levels.
