AMD Stock Defies Skeptics: Soars Despite Lukewarm Analyst Sentiment

Wall Street shrugs—AMD bulls charge ahead anyway.

Chipmaker's silent rally

While analysts mumbled about 'valuation concerns,' Advanced Micro Devices' stock carved a 5% gain today on heavy volume. No upgrades, no price target hikes—just relentless buying from institutions betting against the consensus.

The cynic's corner

Funny how 'overvalued' suddenly becomes 'undervalued' when short interest hits a 3-month high. Maybe those analysts forgot their own price targets from last quarter?

Bottom line

AMD's proving again that markets move faster than research reports. The stock's now up 22% since last earnings—while the average analyst rating stayed stubbornly at 'hold.' Somebody's missing the plot.

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Rasgon’s reason for his tepid stance on AMD stock has to do with its current market position and future prospects. While the analyst noted that AMD has improved its position against rival CPU Maker Intel (INTC) and has strong potential in the artificial intelligence (AI) sector, he believes these changes are already more than priced into AMD stock. The analyst also expressed concerns about the AI market and how much value it holds for AMD.

Rasgon wasn’t the only analyst to update their coverage of AMD with an unenthusiastic stance. Seaport Global analyst Jay Goldberg maintained a Hold rating with no price target for the shares. The renewed Hold ratings come despite AMD’s strong earnings report last week, which triggered a large number of price target increases for the stock.

AMD Stock Movement Today

AMD stock was up 4.74% on Monday, despite the double Hold ratings from analysts. The shares have also rallied 102.53% year-to-date and 58.49% over the past 12 months. As noted by Rasgon, much of these gains have come from demand for AMD’s AI components.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 27 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $278.09, representing a potential 13.77% upside for the shares.