Advanced Micro Devices (AMD) stock slipped on Tuesday following somewhat bearish coverage from a top analyst. Five-star Bernstein analyst Stacy Rasgon assigned the shares a Hold rating and a $200 price target, suggesting a possible 9.55% downside for the stock.
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Rasgon’s updated coverage of AMD stock comes alongside a regulatory change for rival Nvidia (NVDA). The U.S. government has cleared the way for the graphics processing unit (GPU) maker to sell its H200 AI chips in China. This requires Nvidia to pay a 25% revenue share on all products sold to China.
What’s most interesting about this is what it means for AMD. While there wasn’t a ban on AMD’s AI GPU sales to China, some were worried it could be introduced. Instead, President Donald Trump said that the same revenue share deal announced for Nvidia will also apply to AMD and Intel (INTC). While this means AMD will face increased competition from Nvidia in the market, it has also eased concerns about a potential ban.
AMD Stock Movement Today
AMD stock was down nearly 1% on Tuesday but remained up 80.55% year-to-date. The stock has also increased 73.09% over the past 12 months. The main catalyst that has driven AMD stock higher in 2025 is the AI boom, which has increased the demand for server components used in data centers. AMD has both CPUs and GPUs designed specifically for these uses.
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 ratings and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $284.67, representing a potential 29.76% upside for the shares.
