Advanced Micro Devices (AMD) has seen its stock drop 14% over the past month, but analysts remain positive on its long-term potential. The decline follows a strong 31% gain year-to-date, driven by high demand for AMD’s AI and data center chips.
TipRanks’ A.I. Stock Analysis tool gives AMD an Outperform rating. The automated analysis scores the stock 77 out of 100 and sets a price target of $190, suggesting about 20% upside from current levels. This is slightly higher than the Wall Street average target of $184.44.
AMD reported record revenue of $7.7 billion in the second quarter, up 32% from a year ago. Growth was led by strong sales of server and PC processors. The company also announced a partnership with IBM on quantum computing, broadening its technology offerings and market opportunities.
However, risks remain. U.S. export restrictions on advanced chips to China could slow AMD’s AI revenue. Leadership changes and weaker demand for AI data center chips could also affect growth in the near term.
Wall Street analysts maintain a Moderate Buy consensus for AMD, based on 22 Buy ratings and 12 Hold ratings. The average price target of $188 suggests roughly 18.5% upside from current levels.
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