Advanced Micro Devices (AMD) stock has recovered well from the weakness seen earlier this year and is up 36% year-to-date, driven by renewed hopes about the company capturing demand in the artificial intelligence (AI) chips market through its new graphics processing units (GPUs) while continuing to gain market share in the CPU server market. Most analysts covering AMD stock remain confident about the chipmaker’s long-term growth potential. That said, worries over increasing competition from custom AI chips made by companies like Broadcom (AVGO), the deal between rivals Nvidia (NVDA) and Intel (INTC), and valuation concerns could limit the upside from current levels.
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Analysts’ Views on AMD Stock
AMD’s unveiling of its Instinct MI350 Series GPUs, Instinct MI400 chips (set to be launched next year), and the Helios rack-scale AI platform addressed investors’ concerns about the company lagging behind Nvidia in the AI chips race. However, the recently announced Nvidia-Intel partnership, Nvidia’s $100 billion investment in OpenAI, and the $10 billion contract won by Broadcom for its custom AI chips have triggered competitive concerns.
Following the Nvidia-Intel deal, Bank of America analyst Vivek Arya contended that the partnership might not be as unfavorable for AMD as it is perceived currently. This is because the deal increases the chance of success for Intel’s x86 architecture, especially in the enterprise sector, benefiting AMD as well, given that Intel shares this architecture with AMD. Furthermore, the 5-star analyst argues that chip collaborations generally take several years to reach the market, giving AMD time to sustain momentum without an immediate risk.
Additionally, there is a possibility that Intel might face challenges in managing multiple stakeholders—SoftBank (SFTBY), Nvidia, and the U.S. government, which could impact its focus and execution. Finally, Arya thinks that Intel’s dependence on Nvidia for GPU technology indicates that its own desktop CPU graphics fix remains incomplete, leaving AMD better positioned in this segment in the near term. However, Arya has concerns about the impact of Nvidia’s $100 billion investment in OpenAI on AMD. He feels that this agreement increases competitive risks for other vendors, including Broadcom and AMD. Arya has a Buy rating on AMD stock with a price target of $200.
Likewise, Piper Sandler analyst Harsh Kumar reiterated a Buy rating on AMD stock with a price target of $190. Following AMD’s pre-quarter call, the 5-star analyst noted that management sounded extremely optimistic about business prospects moving through the second half of 2025 and into 2026. Kumar added that, in his view, the key core segments appear to be tracking to their forecast for the quarter, backed by tailwinds such as the server, client, and GPU businesses, as well as traction from the embedded business.
Is AMD Stock a Buy, Hold, or Sell?
Currently, Wall Street is cautiously optimistic on Advanced Micro Devices stock based on 22 Buys and 13 Holds. The average AMD stock price target of $187.32 indicates 13.8% upside potential from current levels.
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