As Advanced Micro Devices (AMD) is becoming a key player in the AI chip race, investors are curious about how leading AI models view the company’s prospects. Both OpenAI and Google’s (GOOGL) Gemini see AMD as a strong long-term AI winner. However, the AI analysts signal potential downside in 2026, citing concerns about slowing revenue and ongoing profitability pressures.
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AI Models Stay Bullish on AMD but Warn of Near-Term Downside
According to TipRanks A.I. analysis, AMD stock has a score of 73 out of 100 with an Outperform rating based on OpenAI’s GPT-4o model. It assigns a price target of $224 to AMD, suggesting a downside risk of over 3% from current levels.
At the same time, Google’s Gemini 2.5 Pro model is slightly more optimistic, scoring AMD at 76 with an Outperform rating and a $227 price target, pointing to roughly 2% downside.
AMD’s Growth Story Looks Strong, Risks Remain
AMD’s strong financial results and upbeat earnings call are major drivers behind its positive outlook. Revenue growth, expanding data center and gaming segments, and strategic partnerships, especially its deal with OpenAI, strengthen its position in the fast-growing AI market.
Also, solid cash generation gives AMD room to keep investing in new products and long-term growth opportunities.
However, the tools highlight several risks. The company’s Embedded segment is shrinking, which could hurt its revenue growth. Meanwhile, uncertainty around China shipments poses challenges in a key market, adding pressure to AMD’s near‑term growth trajectory.
Is AMD a Buy, Hold, or Sell?
Turning to Wall Street, AMD stock has a Strong Buy consensus rating based on 24 Buys and eight Holds assigned in the last three months. At $284.07, the average AMD price target implies 22.53% upside potential. Shares of the company have gained 47.7% in the past six months.
