Advanced Micro Devices (AMD) stock was down on Thursday despite news of a collaboration with PC gaming giant Valve. This partnership will have AMD provide Valve with a Zen 4 processor for the new Steam Machine. Considering the success of the Steam Deck, with an estimated 4 million units shipped, there are high hopes for Valve’s new Steam Machines.
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However, this isn’t the first time that Valve has released a Steam Machine. It made a similar attempt roughly 10 years ago, but it didn’t go over well with consumers, and the run didn’t last long. This time could be different, as Valve has built an incredibly strong consumer base on Steam and has dominated PC gaming. Attempts by major companies such as Microsoft (MSFT), Amazon (AMZN), and Epic Games (EPCGM) have all failed to challenge Steam.
AMD’s team-up with Valve makes sense, as it’s already a provider of components for the Steam Deck. It also provides the chips that power Microsoft’s Xbox consoles, as well as Sony’s (SONY) PlayStation devices. The one major gaming company that doesn’t rely on AMD is Nintendo (NTDOF), with its Switch 2 being powered by Nvidia (NVDA) chips.
AMD Stock Movement Today
AMD stock was down 1.36% on Thursday but remained up 111.42% year-to-date. The stock has also increased 86.47% over the past 12 months.
A large portion of AMD’s stock gains are tied to its server business. The company’s data center offerings have attracted artificial intelligence (AI) companies, such as ChatGPT maker OpenAI (OPAIQ). While this has helped AMD in 2025, there are concerns that the AI bubble could pop.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 28 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $281.27, representing a potential 10.52% upside for the shares.
