Advanced Micro Devices (AMD) stock took a beating on Tuesday despite updated bullish coverage from a top analyst. Five-star Bank of America analyst Vivek Arya reiterated a Buy rating and a $300 price target for AMD stock, which represents a possible 31.15% upside for the shares.
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Arya’s updated coverage of AMD stock comes well after any recent catalysts for the company’s shares. However, there is big news happening in the next couple of days that traders will want to keep an eye on. Nvidia (NVDA), the leader of the graphics processing unit (GPU) market that AMD also competes in, will release its Q3 2025 earnings report after markets close on Wednesday. Nvidia’s earnings could have a major impact on AMD due to its position as the GPU market leader, though what kind of effect this will have won’t be known until that report is released.
AMD Stock Movement Today
AMD stock was down 5.67% on Tuesday but was still up 87.84% year-to-date. The stock has also rallied 72.55% over the past 12 months.
AMD’s strong stock gains in 2025 are largely tied to the artificial intelligence (AI) boom. While Nvidia does dominate this sector, there’s still strong demand for AMD’s server components, including its GPUs and CPUs. AMD has even struck a deal with ChatGPT maker OpenAI (OPAIQ) and said other similar deals are in the works.
On the flipside of that, there are significant concerns that the AI sector has accelerated too quickly, resulting in a bubble that could pop. This has some investors worried and could help explain why AMD stock was down today.
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 23.8% upside for the shares.
