Advanced Micro Devices (AMD) stock rallied on Thursday even after the company received lukewarm coverage from a top analyst. Five-star Bernstein analyst Stacy Rasgon reiterated a Hold rating and a $200 price target for AMD stock, representing a potential 12.28% downside for the shares.
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Rasgon’s updated coverage of AMD stock came ahead of the earnings report from rival chipmaker Nvidia (NVDA). Analysts and investors were fixated on this earnings report, as Nvidia is a market leader in the AI component sector. With that report out, investors can breathe a sigh of relief following weeks of growing concerns about an AI bubble popping.
For the record, Nvidia easily beat Wall Street’s earnings per share and revenue estimates for the quarter. It also provided strong guidance for Q4 2025. These results have reignited interest in AI component companies and strengthened investor morale, which is a positive for AMD and others in the sector, such as its CPU rival Intel (INTC).
AMD Stock Movement Today
AMD stock was up nearly 2% on Thursday, extending an 88.72% year-to-date rally. The shares have also increased 62.59% over the past 12 months.
Investors will also keep in mind AMD CEO Lisa Su’s high hopes for the AI data center sector. She expects this market to reach $1 trillion by 2030 and is dedicated to making AMD a major component supplier that services it.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 27 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $281.78, representing a potential 23.21% upside for the shares.
