AMD’s Growth Potential Balanced by Market Risks and Economic Dependencies: A Hold Rating Analysis

DBS analyst Amanda Tan has maintained their neutral stance on AMD stock, giving a Hold rating today.

Amanda Tan’s rating is based on a combination of factors that highlight both the potential and challenges facing Advanced Micro Devices (AMD). While AMD is well-positioned for growth in the AI and data center markets, with a significant opportunity in AI infrastructure development through its partnership with HUMAIN, much of this potential appears to be already reflected in the current stock price. The company’s strategic roadmap, which includes new product releases and market share gains against competitors like Intel, underscores its growth prospects.
However, Amanda Tan also notes that AMD’s heavy reliance on the PC market, which accounts for a substantial portion of its revenue, exposes it to economic fluctuations that could impact demand. Additionally, the competitive landscape, with strong rivals such as Intel and NVIDIA, presents risks that could affect AMD’s earnings outlook. These considerations, along with the impact of external factors like export bans, contribute to the Hold rating, suggesting that while AMD has strong growth potential, the stock may face constraints in the near term.

In another report released today, Bernstein also maintained a Hold rating on the stock with a $95.00 price target.