Advanced Micro Devices (AMD) stock fell on Thursday after the semiconductor company was hit with a downgrade from Erste Group analyst Stephan Lingnau. The analyst dropped AMD stock to a Hold rating from a Buy, but didn’t provide a price target for the shares.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Lingnau gave a few reasons for the AMD stock downgrade in a research note to clients. He highlighted the fact that the company’s operating margins have been lower than the sector average in recent quarters. Additionally, the analyst argued that the value of AMD is too high for its lackluster return and failure to improve operating margins.
The downgrade from Lingnau came after another blow to the stock from HSBC analyst Frank Lee on Tuesday. Lee reiterated a Buy rating for AMD stock, but lowered his price target for the shares to $185 from $200. This new price target suggests there’s still a potential 18.57% upside for AMD shares.
AMD Stock Movement Today
AMD stock was down 2.55% on Thursday, but remained up 28.71% year-to-date. The shares have also increased 5.82% over the past 12 months. 2025 has been a good year for the company, with the artificial intelligence (AI) boom having increased demand for its server products. One of the company’s executives recently defended AMD’s server CPU prices and argued the company offers “superior value.”
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 25 Buy and 12 Hold ratings over the past three months. With that comes an average AMD stock price target of $184.44, representing a potential 18.6% upside for the shares.
