Artificial intelligence (AI) is rapidly changing the technology sector, opening new opportunities for companies that provide the chips and software needed to drive this trend. Advanced Micro Devices (AMD), a leading chipmaker gaining ground in AI processors, and Palantir Technologies (PLTR), a software company known for its data analytics platforms, have both emerged as key names to watch in the AI space this year. Using TipRanks’ Stock Comparison Tool, we compare both of them to see which stock Wall Street views as the better pick.
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Advanced Micro Devices (NASDAQ:AMD) Stock
Advanced Micro Devices (AMD) has gained about 35% so far in 2025. The rise comes as investors grow more upbeat about the chipmaker’s ability to tap into demand for artificial intelligence (AI) GPUs. Recently, AMD and IBM (IBM) partnered to build new computers that combine quantum tech with AMD’s chips to tackle tasks like climate studies and drug design. The tie-up highlights AMD’s push to stay at the front of next-generation computing. Still, trade issues between the U.S. and China and strong rivalry in the chip space remain major risks.
On the earnings front, AMD posted mixed results for Q2 FY2025. Revenue rose 32% year-over-year, and the company gave upbeat guidance for Q3 sales, which pleased investors. However, earnings per share were only in line with forecasts.
Just last week, Truist Securities analyst William Stein upgraded AMD to Buy from Hold and raised the price target from $173 to $213, implying 31% upside from current levels. Stein cited rising demand from data centers and AMD’s stronger footing in AI as the key drivers behind his bullish stance. Stein believes that AMD has been gaining momentum in the AI space. Earlier, AMD had less than 1% market share, but its “Rome” processors helped it grow while Intel (INTC) faced challenges. Today, AMD holds more than 20% of the server CPU market. Stein also raised his earnings forecast to $7.89 per share in 2027, pointing to the new MI355 chip as a key growth driver.
Is AMD Stock a Buy or Sell Now?
Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 25 Buys and 10 Holds. The average AMD stock price target of $184.74 indicates 13.60% upside potential from current levels.
Palantir Technologies (NASDAQ:PLTR) Stock
Palantir (PLTR) has surged 107% in 2025, fueled by strong demand for its AI-powered platforms. The company continues to benefit from government contracts, especially in defense and intelligence, where its software helps process large and complex data sets. Over time, Palantir has also expanded into commercial markets, serving clients in healthcare, energy, and finance. Still, the stock has faced pressure in recent weeks. Concerns about a possible AI bubble, along with valuation worries, have weighed on investor sentiment.
On the earnings front, the data analytics company beat Wall Street’s expectations in Q2, with revenue up 48% year-over-year to over $1 billion for the first time. The company also raised its full-year 2025 revenue outlook to between $4.142 billion and $4.150 billion, reflecting robust growth across both government and commercial businesses.
Impressed by the Q2 results, Wedbush analyst Dan Ives reiterated his Outperform rating and $160 price target, calling the quarter a “blowout across the board.” The 4.5-star analyst called Palantir one of his “top tech picks for 2025,” pointing to growing momentum across both federal and commercial markets. According to Ives, one key area of growth is U.S. commercial revenue, which Palantir now expects to climb 85% year-over-year in FY25, well above its prior forecast of 68%. He sees this as clear evidence that adoption of Palantir’s AI tools in the private sector is gaining pace.
What Is the Price Target for Palantir Stock?
Overall, Wall Street has a Hold consensus rating on Palantir Technologies stock based on five Buys, 13 Holds, and two Sell ratings. The average PLTR stock price target of $154.47 indicates a possible downside of about 1.43% from current levels.
Conclusion
Wall Street holds a moderately bullish view on AMD and a more cautious stance on Palantir. Analysts see greater upside potential in AMD, backed by its solid fundamentals, strength in both data center and client segments, and growth prospects in AI.