Wall Street analysts are bullish on Advanced Micro Devices (AMD) stock over the next 12 months, giving it a “strong-buy” rating. AMD is one of the top producers of graphics processing units (GPUs). Since the start of the year, the price of Advanced Micro Devices stock has declined by 2.67%. However, with recent developments, the company is looking to pick up ground on Nvidia in the AI technology race this year.
While the semiconductor company is facing significant challenges and opposition, Wall Street sees several silver linings for AMD stock. Entering 2025, CEO Lisa Su suggested that chip supplies could be tight in 2025, leading to a challenge in supporting the heightened demand. “And going into the next few quarters going into 2025, I think we expect that the environment will continue to be tight, but we’ve also planned for significant growth going into 2025
For example, AMD’s latest line of products stacks up rather well against Nvidia’s. Despite the arrival of DeepSeek AI’s latest technology, Wall Street is doubling down on AMD. With its earnings set to come today, analysts are expecting a solid performance. Prior to the earnings call, AMD was up 3% on Tuesday.
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According to TipRanks, At present, 24 researchers track Advanced Micro Devices stock and issue ratings for it. A majority — 15, to be exact, deem it a ‘Strong Buy’, while 8 rate it a ‘Hold’. Only one analyst — HSBC’s Frank Lee, gave AMD shares a ‘Sell’ rating. The average price forecast for AMD stock currently sits at $160.39 according to TipRanks, a figure that equates to a 37.11% upside from current levels.
Most Wall Street firms remain bullish on AMD — but they have generally moderated their price targets as of late. Matt Bryson of Wedbush cut his price target to $150 from $200 — while Citi reduced theirs from $200 to $175. On the flip side, Morgan Stanley equity researcher Joseph Moore kept an ‘Equal Weight’ rating on AMD stock. However, his outlook is slightly less optimistic. Moore cut his price target from $158 to $147.