The boom in artificial intelligence is lifting both chipmakers and software firms. Advanced Micro Devices (AMD) is growing fast with its AI chips, while Palantir Technologies (PLTR) is winning more business for its data platforms in government and private companies. Both are part of the AI wave but in different ways.
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AMD is a hardware play, where success depends on selling more AI chips and dealing with trade risks. Meanwhile, Palantir is a software play, where growth relies on reaching more commercial customers while keeping execution strong. With both stocks up so far this year, investors want to know which one Wall Street believes can climb higher.
Advanced Micro Extends AI Push
AMD stock has climbed about 36% in 2025, riding strong optimism around its AI GPU roadmap. The company recently deepened its AI infrastructure play, announcing a deal with IBM (IBM) and Zyphra to roll out a large cluster of its Instinct MI300X GPUs on IBM Cloud — the first big use of AMD’s full AI training platform. Around the same time, AMD also signed a deal with Tech Mahindra to bring its chips into hybrid cloud and AI services for industries such as telecom, finance, and healthcare.
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.
Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 21 Buys and 13 Holds. The average AMD stock price target of $187.73 indicates 14% upside potential from current levels. Analysts highlight AMD’s growing share in AI and server chips as a clear strength, but they also note that trade tensions and tough competition in the semiconductor market remain risks that could limit further gains.
Palantir Surges on AI Demand
PLTR stock has surged 129% in 2025, lifted by strong demand for its AI tools. The company still relies on defense and intelligence deals but has also moved into healthcare, energy, and finance. In September, Palantir won a new contract with the U.K. government to expand military use of AI, adding to its defense work. Even so, the stock has come under pressure after an internal U.S. Army memo called its joint battlefield system project with Anduril “very high risk” due to security flaws. Palantir’s high valuation has also made some investors cautious despite the company’s strong growth.
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.
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 $157.33 indicates a possible downside of about 9.09% from current levels.
AMD or PLTR: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared AMD and PLTR to see which AI stock analysts currently favor. AMD holds a Moderate Buy consensus rating, with an average price target of $187.73, indicating about 14% upside from current levels. In contrast, Palantir has a Hold rating, with an average price target of $157.33, implying roughly 9% downside.
Conclusion
Both Advanced Micro and Palantir are clear beneficiaries of the AI boom, but Wall Street’s outlook favors AMD for now. Analysts see greater upside potential in AMD, backed by its solid fundamentals, steady partnerships, and growth prospects in AI.