Is Wall Street Still Betting Big on Advanced Micro Devices (AMD) Stock in 2025?

AMD''s stock keeps defying gravity—but how much higher can it go?

Wall Street''s love affair with chip stocks shows no signs of cooling. As AI workloads explode and data centers scramble for next-gen silicon, Advanced Micro Devices finds itself holding a golden ticket.

The billion-dollar question: Have analysts underestimated AMD''s runway?

Some hedge funds are doubling down, betting Lisa Su''s team can outmaneuver rivals in the high-stakes semiconductor chess match. Others whisper about stretched valuations—because nothing says ''healthy market'' like PE ratios that belong in a SpaceX trajectory.

One thing''s certain: In this tech arms race, AMD isn''t just playing—it''s rewriting the rules.

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Improved Sentiment on AMD Stock

At the recently held Advancing AI event, Advanced Micro Devices discussed several new products, including its upcoming MI400 chips that would help it compete with Nvidia (NVDA). Further, the company unveiled its full-server rack Helios, which is expected to see solid demand from cloud companies and large language model (LLM) developers.  

The Advancing AI event and the company’s data-center revenues in Q1 have helped improve investor sentiment on AMD stock. Notably, AMD expects the total addressable market for AI chips to surpass $500 billion by 2028, though it didn’t provide insights on how much of this market it is targeting to capture. The company has also been trying to bolster its portfolio through strategic acquisitions and partnerships, like the ZT Systems deal.

While these positive developments seem encouraging, the modest year-to-date rise and Wall Street’s average price target indicate that the market is cautious on AMD stock over the NEAR term, as the company’s AI ambitions might take time to materialize and contribute significantly to its top line.

Analysts’ Views on AMD Stock

Following the Advancing AI event, Bernstein analyst Stacy Rasgon reiterated a Hold rating on Advanced Micro Devices stock with a price target of $95, which indicates about 26% downside risk from current levels. The 5-star analyst stated that the event was similar to last year, “not bad but no huge surprises.” Rasgon noted the products unveiled at the event, but contended that there were no new major GPU partners announced, with most of the testimonials, like that of Meta Platforms (META), Oracle (ORCL), and Microsoft (MSFT), already existing and known.

Moreover, Rasgon pointed out that the company didn’t offer any updates on the near-term outlook, though he highlighted that management is incrementally bullish on the long-term potential. While the analyst agreed that AMD is making some progress “on paper at least” and building the capabilities required to capture the AI business, one has to wait to see how much success the company will actually achieve. Rasgon argued that he WOULD still rather own NVDA stock, given that both stocks are trading at similar valuation multiples in the range of about 29x to 30x, and there is no debate about whether or not there is actual, meaningful demand when it comes to Nvidia.

In contrast, 5-star analyst Harsh Kumar from Piper Sandler reiterated a Buy rating on AMD stock and boosted the price target to $140 from $125. Kumar is encouraged by the product launches at the AMD event, mainly the Helios rack, which he thinks is pivotal for the company’s Instinct growth. He expects a “snapback” for AMD’s GPU business in the fourth quarter of 2025, when most of the China-related charges are accounted for.

Is AMD Stock a Buy or Sell Now?

To summarize, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 22 Buys and 11 Holds. The average AMD stock price target of $129.93 indicates a modest upside potential of 2.3% from current levels.