Advanced Micro Devices (AMD) stock has risen 5.7% over the past week, jumped 55.1% in the last month, and surged 239.5% over the past year. Wall Street’s analysts are moderately bullish, with a 12‑month average price target of $308.09, implying downside from the last end‑of‑day price of $341.54 despite strong recent momentum.
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Analyst Frank Lee Cfa of HSBC Global Investment Research downgraded AMD to Hold on May 4, 2026, setting a price target of $340, slightly below where the stock now trades. His view suggests limited near‑term upside after a powerful rally driven by excitement around server CPUs for agentic AI.
Lee notes that AMD’s 1Q26 results and 2Q26 guidance are likely to be in line with both his estimates and market consensus, not delivering a surprise beat. He expects 2Q26 revenue of $10.5 billion, matching consensus, as ongoing foundry capacity constraints are likely to persist throughout 2026.
The analyst has trimmed his 2026 AI GPU revenue estimate from $18.5 billion to $14.6 billion, closer to the $15.2 billion consensus, citing supply chain uncertainty around the MI455 rack server ramp‑up. He also sees 2026 server CPU revenue at $11.8 billion, implying 32% year‑on‑year growth but still 11% below the market’s $13.3 billion forecast.
Lee argues that AMD’s upside in 2027 could improve as TSMC ramps 2nm and adds more 3nm capacity in Taiwan, Arizona, and Japan, easing constraints for future MI450 GPUs and sixth‑generation Epyc CPUs. This N‑star analyst ranks 1459 out of 12173, with a 51.22% success rate and 28.5% average return per rating, and investors can track more ratings on TipRanks’ Top Wall Street Analysts page.