AMD Stock Soars as AI Frenzy Ignites Rally—But Analysts Stay Cautious With Hold Ratings

AMD rides the AI wave as shares surge, yet Wall Street's big guns aren't ready to chase the hype.

Deutsche Bank and Morgan Stanley keep their Hold ratings firmly in place—because when has irrational exuberance ever burned investors?

The chipmaker's rally defies skepticism, proving once again that markets run on FOMO first, fundamentals second.

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Deutsche Bank, Morgan Stanley Retain Neutral Stance on AMD Stock

Following AMD’s updates, Deutsche Bank analyst Ross Seymore reiterated a Hold rating on the chipmaker’s stock. Seymore called the Analyst Day a “very constructive and AI/DC [data center]-driven” meeting, with the semiconductor company significantly raising all key financial targets compared to the previous estimates given in 2022. The 5-star analyst highlighted that AMD doubled its forecast for AI silicon total addressable market (TAM) to $1 trillion by 2030 and raised its revenue CAGR (compound annual growth rate) target to more than 35%.  

Seymore added that it was encouraging to see that the company’s profitability targets were “better-than-feared,” with gross margin in the 55% to 58% range and operating margin above 35%. Moreover, management reaffirmed the notable ramp in MI355 and acceleration in the second half of 2026, with the OpenAI (PC:OPAIQ) and Oracle (ORCL) deals. Finally, Seymore noted AMD’s confidence about winning several “multi-gigawatt” customers and achieving a “meaningful” double-digit market share.

Despite these positives, Seymore and some other analysts are sidelined on AMD. They contend that the Optimism is already priced into the stock.

Meanwhile, Morgan Stanley analyst Joseph Moore reiterated a Hold rating with a price target of $260. Moore stated, “The real issue here then is that the stock is going to be binary around AI market share in our view, and a 5 year single point earnings model doesn’t really capture the richness of that debate.” The 5-star analyst further contended that the details provided at the Analyst Day were already known, and nothing discussed changed his view. Moore argued that one needs to hear more about the broader adoption of the MI450 chips by major cloud providers to justify AMD’s current share price, especially after its recent rally.

Is AMD a Good Stock to Buy?

Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 28 Buys and 10 Holds. The average AMD stock price target of $281.27 indicates 10.4% upside potential. AMD stock has rallied 111% year-to-date.