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Key Takeaways
- AMD’s record quarterly results and upbeat outlook on strong demand for its data center chips met a muted reception from investors amid worries about an AI bubble.
- Wall Street analysts are overwhelmingly bullish on the chipmaker, with several raising their targets for its stock following the results.
Advanced Micro Devices investors have become harder to impress.
The chipmaker yesterday posted record quarterly results and an upbeat outlook on surging demand for its data center chips—and its stock has hardly budged. Advanced Micro Devices (AMD) shares were up about 2%, near $255, in recent trading as the broader tech sector looked to rebound from yesterday’s sell-off.
Here’s a roundup of what Wall Street analysts said about AMD after last night’s results.
Why This Matters for Investors
This year’s big stock gains for chipmakers like AMD have given rise to worries about an AI bubble. The weak reaction to AMD’s strong results could underscore growing uncertainty around the sector—or, at least, the rich valuations carried by stocks in it.
Analysts at Oppenheimer, who maintained a neutral rating, voiced some concerns about AMD’s reputation as a “second horse supplier” to AI chip leader Nvidia (NVDA), preferring to stay on the sidelines while waiting to see more from AMD’s ability to compete with its AI strategy.
Most Wall Street analysts, however, remain bullish on the chipmaker’s stock amid expectations of growing market share for AMD.
Jefferies and HSBC analysts, who have “buy” or equivalent ratings for the stock and $300 price targets, said they came away from Tuesday’s results convinced of AMD’s potential for more AI-driven growth. HSBC called AMD’s recent deal with OpenAI a “game changing” development.
Wedbush, which boosted its target to $290 from $270, said it is looking forward to an Analyst Day event next Tuesday for more color on its roadmap.
While Wall Street’s targets and ratings may be in flux, the mean price target on AMD’s shares is around $275 based on Visible Alpha data and Investopedia calculations. About twice as many analysts have “buy” ratings as have “holds,” with no bearish ratings currently tracked by the service.
Shares of AMD have more than doubled in 2025 so far, with much of its recent gains coming in the wake of the OpenAI deal announced last month.
