Advanced Micro Devices (AMD) is set to report its second-quarter earnings on August 5. The stock is up about 46% this year, helped by growing confidence in its AI chip plans. It gained steam after AMD showed off its upcoming MI350 chip at its June AI event. This week, shares rose more than 4% on reports that AMD will raise prices on the MI350, a sign of strong demand. A lift in U.S. chip export bans has also eased worry about sales to key global markets.
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Despite the strong buzz around the AI chip, the spotlight is now on how well AMD delivers.
The stock’s high valuation and increasing competition from Nvidia (NVDA), especially in the high-end chip market, remain concerns for several analysts. Heading into the Q2 results, Wall Street remains cautiously optimistic about the stock. The average price target implies roughly 11% downside from current levels, indicating much of the near-term upside may already be priced in.
AMD Faces Divided Analyst Opinions Ahead of Q2 Results
Wall Street is split on AMD’s near-term upside. Some analysts see strong AI-driven growth ahead, while others remain cautious due to lofty expectations and execution risks.
For instance, Erste Group’s Stephan Lingnau upgraded AMD to Buy, citing strong demand for high-performance chips and rising margins. He expects profit growth to pick up in 2025 and sees “good growth prospects” for the stock.
On the contrary, Bernstein Top analyst Stacy Rasgon prefers to remain on the sidelines. While he raised his price target on AMD to $140, he kept a neutral rating, pointing to high valuations and near-term risks like “tariff pull-forwards.” Rasgon sees near-term upside from China AI sales and the MI350 launch but warned that investor expectations may already be “elevated.”
What to Watch on August 5
The company is expected to report earnings per share (EPS) of $0.48 for Q2 2025, reflecting a 30% year-over-year decline. However, analysts expect AMD to report Q2 revenue of $7.41 billion, reflecting a year-over-year growth of 27%.
During the Q2 earnings call, analysts will watch for signs of solid execution, especially on production, customer uptake, and profits from its AI business.
Is AMD Stock a Good Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 24 Buys, 10 Holds, and 1 Sell rating. The average AMD stock price target of $156.47 indicates a possible downside of 11.25% from current levels.
