Advanced Micro Devices (AMD) shares have slipped since the company posted mixed second-quarter results on August 6. The stock continued to decline, falling about 6% in yesterday’s session. Revenues reached a record $7.7 billion, but profit margins came under pressure due to $800 million in inventory and related charges tied to U.S. export curbs on its MI308 AI chips. Despite the pullback, Top Wall Street analysts remain bullish on AMD, raising their price targets to reflect strong demand in the data center segment and future growth potential.
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Top Analysts Stay Bullish on AMD’s AI and Data Center Growth
Following AMD’s latest quarterly report, Piper Sandler analyst Harsh Kumar raised the price target for AMD to $190 from $140 and reiterated an Overweight rating. The 5-star analyst acknowledged the company’s modest top-line beat and stronger-than-expected revenue guidance for the September quarter. He said the key driver was strength in AMD’s data center business, led by the ramp-up of the MI350 GPU. Based on management’s comments, Kumar expects data center GPU revenue to reach $1.8 billion in Q3, which could make it AMD’s biggest quarter yet in that segment.
Beyond data center strength, he noted solid trends in AMD’s client, server, and embedded businesses. However, he expects the Gaming segment to dip in Q4 due to seasonality. Going forward, Kumar expects strong MI350 demand and steady performance across other units to drive gains through late 2025 and into 2026.
Similarly, Barclays Top analyst Tom O’Malley raised his price target on AMD to $200 from $130 and maintained a Buy rating. The five-star analyst pointed to strong demand in the company’s data center business, driven by AI. He expects MI-series GPUs to reach a $2.3 billion run rate by year-end. That growth could push data center revenue above $10 billion by 2026, even without a boost from China.
O’Malley also pointed to solid gains in AMD’s client segment, where average selling prices (ASPs) rose 42% year-over-year in June. The analyst sees AMD gaining share in both client and data center, with “multiple ways to win” into 2026.
Is AMD a Buy or Sell Now?
Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 25 Buys, 10 Holds, and one Sell assigned in the last three months. At $161.16, the average AMD price target implies a 1.20% downside potential.
