Advanced Micro Devices (AMD) stock slipped on Wednesday after former Senior Product Manager James Prior gave a warning about the semiconductor company’s upcoming graphical processing units (GPUs). Prior said it wouldn’t be “economically feasible” for the company to release a new flagship graphics card that is priced below $1,000.
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For comparison, AMD’s last flagship GPU was the RX 7900 XTX, which was priced at $999. Its current generation of GPUs is the 9000 series. Leading that is the RX 9070 XT, which is comparable to rival Nvidia’s (NVDA) RTX 5070 Ti. That means AMD still has yet to release a flagship GPU this generation to challenge Nvidia’s top offerings.
If AMD is unable to keep the price of its graphics cards down, it could hamper its gaming revenue. The company has recently focused on appealing to budget-minded gamers to sell GPUs. This resulted in it reporting gaming revenue of $1.1 billion in Q2 2025, a 73% increase year-over-year that was fueled by strong demand for its GPUs.
AMD Stock Movement Today
AMD stock was down 6.61% on Wednesday, but remained up 33.24% year-to-date. The stock is also still up 35.47% over the past 12 months. Mixed earnings hampered AMD stock, and analysts have responded with a series of ratings and price target updates. Not all of that was negative, as TD Cowen analyst Joshua Buchalter reiterated a Buy rating and raised his price target to $195 from $165.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD stock is Moderate Buy, based on 25 Buy, 10 Hold, and a single Sell rating over the past three months. With that comes an average AMD stock price target of $161.16, representing a potential 1.03% downside for the shares.
