What a rollercoaster week it’s been for the tech sector and AMD (AMD) in particular! On Wednesday, the company’s stock skyrocketed by an impressive 23.8%, marking its best performance in nearly a decade. This surge came hot on the heels of President Trump’s unexpected announcement of a 90-day pause on most reciprocal tariffs, reducing them to 10%. Investors breathed a sigh of relief, interpreting this move as a de-escalation of global trade tensions. However, it’s worth noting that despite this uptick, AMD’s stock is still significantly below its peak in March 2024 when it reached $227 value per share.
KeyBanc Downgrade
Earlier in the week, KeyBanc Capital Markets threw a curveball by downgrading AMD’s stock from “Overweight” to “Sector Weight.” The analysts expressed concerns over intensifying competition from heavyweights like Nvidia (NVDA) and Intel (INTC) and potential tariff threats in China. They highlighted the possibility of a price war in the PC chip market, which could pressure AMD’s profit margins. This downgrade underscores AMD’s challenges in maintaining its competitive edge amid a rapidly evolving market landscape.
Product Development and AI Strategy
Despite these market fluctuations, AMD remains steadfast in its commitment to innovation, particularly in artificial intelligence. The company launched its Instinct MI325X accelerators in the fourth quarter of 2024. These accelerators boast a whopping 288GB of HBM3E memory and are designed to deliver exceptional performance for AI tasks. AMD has unveiled plans for its MI350 series, based on the new CDNA 4 architecture, expected to hit the market in 2025. This series promises a substantial leap in AI inference performance, aiming to solidify AMD’s position in the AI hardware arena.
In summary, AMD’s week has been a mix of highs and lows. While the stock experienced a significant surge due to favorable trade policy developments, the downgrade from KeyBanc reminds us of the competitive and geopolitical challenges that lie ahead.
What Is the Price Target for AMD Stock?
Based on 36 ratings, Advanced Micro Devices is considered a Moderate Buy. The average price target for AMD stock is $147.27, representing a 63.18% upside potential.
