Why Is AMD Stock Receiving Mixed Analyst Ratings Ahead of Q2 Earnings?
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Yesterday, Susquehanna analyst Christopher Rolland lifted AMD's price target to a Street-high of $210 from $135, while maintaining his 'Buy' rating. Rolland's revised price target reflects nearly 17% upside potential from current levels.
At the same time, Morgan Stanley analyst Joseph Moore increased the price target on AMD to $185 from $121 but maintained his 'Hold' rating. Moore's $185 price target reflects 3.1% upside potential.
Surprisingly, DZ Bank analyst Ingo Wermann double-downgraded AMD stock to a 'Sell' rating from a 'Buy,' yet raised the price target from $118 to $150, implying 16.4% downside potential from current levels.
Analysts Remain Divided on AMD Stock
Susquehanna's Rolland expects AMD to deliver in-line to slightly better results on Tuesday, driven by robust PC (personal computer) sales, as rival Intel (INTC) warned that tariff-related pull-ins continued during the quarter. The analyst is also impressed by AMD's server business, noting the company's market share gains in EPYC data center CPUs (central processing units). Rolland expects AMD to recover roughly $800 million (out of $1.5 billion) in lost revenue in the second half of 2025 from the potential China sale resumption. Accordingly, he increased revenue expectations from AMD's MI300 series to over $7 billion, up from the prior estimate of $6.2 billion.
Morgan Stanley's Moore remains uncertain about when AMD could actually resume shipping its MI308 AI accelerator to China and thus left his near-term outlook unchanged at a 'Hold' rating. Nonetheless, Moore remains optimistic about AMD's PC segment outlook, especially after Intel's solid quarterly performance. Moore also noted that the potential for AMD's AI revenue to exceed his current estimate of $6 billion is becoming clearer, even though he views AMD in a 'somewhat secondary position in AI' compared to competitors.
Turning to DZ Bank's Wermann, the analyst has remained cautious about AMD's future potential. While he has not provided specific reasons for the downgrade, his bearish stance could be due to factors such as competitive landscape and execution risk as well as AMD's position in the AI market. Despite this bearish outlook, Wermann raised AMD's price target, implying improving fundamentals and earnings prospects.
What Is AMD's Price Target?
On TipRanks, the average AMD price target of $156.47 implies 12.8% downside potential from current levels. Based on Wall Street's varying ratings, AMD has a Moderate Buy consensus rating, with 24 Buys, 10 Holds, and one Sell rating. Year-to-date, AMD stock has surged 48.6%.
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