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Business Insider
a day ago
- Business
- Business Insider
Why Are Some Analysts Cautious on AMD Stock Despite AI Hype?
Chipmaker Advanced Micro Devices (AMD) recently reported its results for the second quarter of 2025, which failed to live up to investors' expectations. While AMD's Q2 revenue surpassed the Street's estimates, its earnings were in line with expectations, with investors concerned about the decline in artificial intelligence (AI) business revenue. Many analysts maintained their bullish stance on AMD stock after the Q2 print. However, some analysts expressed concerns about AMD's AI/data center revenue and higher expenses. In fact, Wall Street's average price target indicates a limited upside potential from current levels. AMD stock has rallied 43% so far this year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Heading into Q2 results, the hype around AMD's AI business was very high, especially after the Advancing AI event. AMD highlighted its new GPUs (graphics processing units), which revived investors' hopes about the company's prospects after persistent concerns about it lagging behind rival Nvidia (NVDA) in the AI race. However, AMD's Q2 results, especially the data center business growth and AI business revenue decline, disappointed investors. AMD cited U.S. export restrictions that eliminated MI308 sales to China and the transition to its next-generation chips as the reasons for the decline in Q2 AI business revenue. AMD's Q2 Results Draw Some Concerns Despite the mixed Q2 results, AMD bulls are confident about the company's potential to grow in both CPU and GPU markets and capture AI opportunities. However, some analysts remain cautious due to the ongoing challenges. For instance, Goldman Sachs analyst James Schneider raised his price target for AMD stock to $150 from $140, but reiterated a Hold rating. The 4-star analyst noted that AMD is seeing strong traction with its Data Center GPU solutions. In particular, Schneider expects the MI355 offering to drive strong double-digit quarter-over-quarter growth in the Data Center segment in the third quarter and continued sequential growth in Q4 2025. While Schneider remains constructive on AMD's ability to drive significant market share gains in the PC and enterprise server markets in the near term, he retains a neutral stance on the stock as he is 'more guarded' on the company's ability to drive scale in Data Center GPUs over time. Also, he thinks that AMD's earnings power is likely to be hampered by the significant operating expenses ramp needed to support its AI software and systems efforts. Meanwhile, Morgan Stanley analyst Joseph Moore lowered his price target for AMD stock to $168 from $185 and maintained a Hold rating. The 5-star analyst stated that the quarter was solid across segments and revenue continues to be 'quite strong, but it's not clear that will be enough to keep the bulls in charge of the narrative.' He contends that AMD's commentary on the timing of resumption of China shipments was 'more vague than expected.' Overall, Moore slashed his price target for AMD stock to reflect lower conviction in China demand and a lack of AI-related upside. Is AMD Stock a Buy or Sell Now? Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 25 Buys and 12 Holds. The average AMD stock price target of $180.78 indicates 4.6% upside potential from current levels.
Yahoo
4 days ago
- Business
- Yahoo
These Were the 2 Best-Performing Stocks in the Nasdaq-100 in July 2025
Key Points The Nasdaq-100 climbed by 3.3% in July, and is now up 8.3% year to date. AMD and Synopsys were the leading performers within the index in July. Both companies saw gains of more than 20% and there could be more ahead. 10 stocks we like better than Advanced Micro Devices › Last month was another solid one for the Nasdaq-100 index. All told, it advanced by 3.3%, bolstering the index's excellent year-to-date performance of 8.3%. However, some stocks significantly outperformed the index in the month of July. In fact, two stocks were able to notch monthly returns that were 6x what the index produced. Let's take a closer look at those two stocks and see why they logged such terrific performances. Advanced Micro Devices First up is Advanced Micro Devices (NASDAQ: AMD). This stock advanced by a staggering 29.5% in the month of July, topping all other companies within the Nasdaq-100, and bringing AMD shares back within range of the stock's all-time high. The company designs and sells microprocessors, including graphics processing units (GPUs), which are integral to the growing artificial intelligence (AI) economy. AMD shares surged in July as the company continues to enjoy strong momentum from its "Advancing AI" event held in June. There, the company announced a series of AI initiatives designed to challenge Nvidia's control of the lucrative AI chips market. Looking ahead, according to consensus estimates compiled by Yahoo! Finance, sell-side analysts expect AMD to generate $32.1 billion in revenue this year, up 24.5% from last year. Synopsys Next up is Synopsys (NASDAQ: SNPS), which recorded a monthly return of 21.4%. Synopsys is another company with deep ties to the AI economy. Its semiconductor design software is critical for chip designers like AMD and Nvidia. Consequently, investors are bullish on Synopsys' prospects. The company has averaged double-digit revenue growth over the last five years as demand for semiconductor design software has remained robust. As for the future, analysts think there is plenty of additional growth ahead for the company. According to consensus estimates compiled by Yahoo! Finance, Synopsys is expected to report $7.4 billion in revenue this year, up 21% year over year. Should you buy stock in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $619,036!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,092,648!* Now, it's worth noting Stock Advisor's total average return is 1,026% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Jake Lerch has the following options: long August 2025 $150 calls on Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices and Synopsys. The Motley Fool has a disclosure policy. These Were the 2 Best-Performing Stocks in the Nasdaq-100 in July 2025 was originally published by The Motley Fool Sign in to access your portfolio
Business Insider
26-07-2025
- Business
- Business Insider
Is AMD Stock a Buy Ahead of Q2 Earnings? Here's Wall Street's Take
All eyes are on Advanced Micro Devices' (AMD) second-quarter earnings that are scheduled to be announced on August 5. AMD stock has rallied about 38% year-to-date, driven by strong Q1 results, encouraging updates at the Advancing AI event, lifting of chip export restrictions, and revived hopes for the company's prospects in the artificial intelligence (AI) chips market. Ahead of the results, Wall Street is cautiously optimistic on AMD stock. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Expectations from AMD's Q2 Earnings AMD delivered impressive first-quarter results, with its data center segment's revenue rising 57%. The company's overall revenue growth has been accelerating in recent quarters. Wall Street expects AMD to report earnings per share (EPS) of $0.48 for Q2 2025, reflecting a 30% year-over-year decline. Meanwhile, revenue is estimated to grow by 27% to $7.41 billion. Looking ahead, Advanced Micro Devices' latest Instinct MI350X and MI355X graphics processing units (GPUs), which compete with Nvidia's (NVDA) Blackwell platform, are expected to boost its AI revenue. Moreover, the upcoming MI400X AI accelerator is expected to drive AMD's top-line higher. Analysts' Views Ahead of AMD's Q2 Results Heading into the Q2 results, Erste Group analyst Stephan Lingnau upgraded AMD stock from Hold to Buy, noting that the company sees further growth in 2025 based on the growing demand for high-performance CPUs and GPUs in data center environments. The analyst expects AMD's operating margin to increase in the medium term and profit growth to accelerate significantly next year. Lingnau expects AMD stock to continue to rise, given the company's 'good growth prospects.' Meanwhile, Citi analyst Christopher Danely increased his price target for AMD stock to $165 from $145, while maintaining a Hold rating. The 5-star analyst expects AMD stock to move higher ahead of the Q2 earnings report, driven by improving sentiment and the company's strong positioning in AI-related growth. That said, Danely is concerned that buy-side expectations for AMD may be too high. Is AMD Stock a Good Buy? Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 26 Buys and 10 Holds. The average AMD stock price target of $145.90 indicates a possible downside of 12.4% from current levels.
Time of India
11-07-2025
- Business
- Time of India
AMD stock soars as HSBC predicts $200 target — Is Nvidia's AI crown in jeopardy?
AMD stock price jumps over 4% as HSBC raises target to $200—are AI chips finally putting real pressure on NVIDIA?- AMD stock price surged more than 4% on Thursday after HSBC upgraded its rating to 'Buy' and sharply increased its target price to $200, hinting at nearly 40% upside from current levels. This bullish revision is tied to the company's advancing AI chip portfolio, particularly the MI300X and MI350 series, which analysts now believe can directly challenge NVIDIA's dominance in the booming AI data center space. Investors are taking notice, with big names like Meta, Microsoft, and OpenAI confirming orders for AMD's latest GPUs. How did AMD stock perform today? As of Friday, July 11, 2025 , AMD stock is trading at $144.16 , up $5.74 (+4.15%) from the previous close. This marks one of AMD's strongest sessions in recent weeks, driven by bullish analyst sentiment and renewed AI optimism. 52-week range : $93.12 – $211.00 YTD performance : +27.4% Market cap : $233.2 billion Volume : 56.8 million shares (vs. 30-day avg of 44.3M) by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Warum Seniorinnen in Sachsen ausgerechnet diesem Schuh vertrauen Senioren-Ratgeber Undo Why is HSBC suddenly bullish on AMD stock? HSBC had previously held a cautious view on AMD's AI roadmap, citing modest performance improvements in earlier versions of its accelerators. However, this view changed dramatically following the company's unveiling of the MI350 series in June at its 'Advancing AI' event. Analysts now believe that the MI350—especially the MI355 accelerator—can compete with NVIDIA's Blackwell platform, both on specs and price. HSBC upgraded AMD from 'Hold' to 'Buy' and set a new target of $200, up from its previous view that underestimated pricing power. HSBC analysts estimate the average selling price of MI355 to be around $25,000, which is $10,000 higher than their earlier forecast. Even then, it's still roughly 30% cheaper than NVIDIA's B200 chip, making AMD's value proposition highly competitive. They now project AI GPU revenue to hit $151 billion by FY2026—57% higher than the current market consensus of $96 billion. Live Events What triggered AMD's sudden surge? On July 10, HSBC upgraded AMD from Hold to Buy and doubled its price target from $100 to $200, projecting nearly 40% upside from current levels. 'AMD's AI GPU revenue could hit $15.1 billion by FY2026, far above Wall Street's consensus of $9.6 billion,' HSBC analysts said in their note. Here's what's driving HSBC's bullish thesis: Key Driver Details MI350 Series Matches Nvidia's Blackwell performance at ~30% lower cost (avg selling price ~$25,000 vs. $35,000 for Nvidia). Cost Advantage Lower total cost of ownership (TCO) could attract hyperscalers like Meta, Microsoft, and AWS. Roadmap strength AMD's upcoming MI400/MI450 chips are expected to rival Nvidia's next-gen Vera Rubin platform. AI Ecosystem Expansion Open software tools and ROCm platform improving fast, narrowing the CUDA advantage gap. What are analysts forecasting for AMD? Forecast Metric Estimate FY2025 Revenue (Consensus) $28.7 billion FY2025 EPS (Consensus) $4.42 FY2026 AI GPU Revenue (HSBC) $15.1 billion HSBC Price Target $200 (40% upside) Forward P/E (FY2026) ~32x (if $6.20 EPS materializes) Several analysts, including those from Barclays and Jefferies, are also warming up to AMD's prospects: Barclays : Maintains Overweight , target raised from $160 → $180 Jefferies : Buy , says 'AMD now firmly second in AI race' Goldman Sachs : Still cautious, holds Neutral with $140 target Can AMD's MI300X chip really challenge NVIDIA's H100? The real game-changer in AMD's lineup is the MI300X, which is already being adopted by major hyperscalers. Meta Platforms has confirmed the chip will power Llama 3.1, its next-generation open-source AI model. In addition, Microsoft Azure and OpenAI are exploring deployments of AMD chips for training workloads. Analysts at Jefferies, Raymond James, and Loop Capital have responded by raising their AMD price targets to between $190 and $200. They see potential for AMD to capture a meaningful share of the AI GPU market, previously dominated almost entirely by NVIDIA. The MI300X's strong price-to-performance ratio is driving this narrative shift. Is Nvidia's AI leadership in danger? Nvidia (NASDAQ: NVDA) still dominates the AI chip market with nearly 90% market share , thanks to its: Proprietary CUDA software stack Deep developer base Long-term enterprise relationships Broad product portfolio (H100, Blackwell, Vera Rubin) Yet, AMD's improving chip roadmap and cost-effective GPUs are beginning to turn heads: Comparison Nvidia (Blackwell) AMD (MI350) Performance Best-in-class Competitive parity (per HSBC) ASP (Avg Selling Price) ~$35,000 ~$25,000 Launch Timeline 2024 H2 2024 H2 Ecosystem CUDA, strong developer base ROCm, rapidly growing "AMD is finally closing the AI performance gap. If it can scale supply and support, it could become a serious alternative to Nvidia," said Vivek Arya, Senior Analyst at BofA. What do AMD's latest earnings say about its AI growth? In Q1, AMD reported revenue of $5.47 billion, in line with expectations, with earnings per share (EPS) of $0.62, slightly ahead of Wall Street's forecast of $0.61. The Data Center segment stood out with $2.3 billion in revenue, up 80% year-over-year, thanks to strong uptake of the MI300 line. Meanwhile, revenue from AMD's Client segment fell 25% YoY, and Gaming dropped 6%, reflecting industry-wide slowdowns. However, the company held its gross margin at 52%, and expects to reach 55%+ by mid-2026, driven by high-margin AI chip sales and increased adoption of the Ryzen 9000 series. AMD reaffirmed its $5 billion AI revenue goal by the end of 2025, even as some investors question the timeline. Still, the broader shift in sentiment suggests more are now buying into AMD's AI vision. What are analysts saying about AMD's future valuation? Despite trading at a forward P/E of 52x on expected 2025 earnings, analysts argue AMD's valuation is justified—perhaps even conservative—given its rapidly expanding AI opportunity. If AMD achieves $4B–$5B in AI-related sales by 2025, with an estimated 25–30% operating margin, it could bring in $1.2B–$1.5B in incremental income, boosting overall earnings by up to 25%. This could position AMD alongside other high-growth tech stocks like NVIDIA and Broadcom, which trade at even higher multiples due to their strong AI businesses. Short-term targets : $150–$160 range could be tested in coming weeks if technical momentum holds. Support: ~$135 Resistance: $151.40 (April high) Medium-to-long term : If AMD executes its MI400 launch in 2025 , and AI GPU sales hit $15B+ in FY26, a $200+ valuation is reasonable. Catalysts to watch: Q2 earnings (expected August 5), hyperscaler adoption updates, MI450 development news. Are institutions and traders betting big on AMD stock? Yes, and the momentum is growing. In Q2 2025 filings, institutional investors like Vanguard and BlackRock increased their AMD positions, while hedge funds such as Coatue Management and D1 Capital opened new stakes. Notably, AMD insiders have not sold stock since April, a sign of internal confidence. Retail investors are piling in too. Options trading volumes on AMD jumped 38% week-over-week, with heavy call buying on $180–$200 strike prices for July and August. This suggests short-term conviction is building around a breakout toward the $200 level. What are the risks to AMD's $200 stock target? Despite the strong setup, AMD isn't without risks. NVIDIA's lead in CUDA software and ecosystem loyalty still gives it a competitive edge. AMD must grow its ROCm software and ecosystem fast to win over more developers and customers. TSMC's production constraints may also limit output, especially with rising HBM3e demand. Additionally, Intel's Gaudi 3 chips pose a future challenge if widely adopted. However, analysts say AMD's pricing advantage, first-mover momentum, and real-world design wins make it a serious contender in AI chips—at least for the next few quarters. Is AMD stock a buy at current levels? With real traction from Meta, Microsoft, and OpenAI, rising gross margins, and a sharply upgraded AI revenue forecast, AMD stock (NASDAQ:AMD) is seeing a clear re-rating from Wall Street. If delivery timelines hold and adoption continues, the stock could realistically hit $195–$200 in Q3. The AI chip race is heating up—and AMD is no longer just a follower. FAQs: Q1: Why did AMD stock price rise after HSBC's rating upgrade? AMD stock price rose because HSBC raised its rating to 'Buy' and increased the target price to $200, driven by strong demand for AMD's AI chips. Q2: Is AMD's MI300X chip competing with NVIDIA's AI GPUs? Yes, AMD's MI300X is now seen as a real competitor to NVIDIA's H100, with big tech firms already using it for AI workloads.
Business Insider
10-07-2025
- Business
- Business Insider
AMD vs. MRVL vs. INTC: Which Chip Stock Is Wall Street's Best Pick?
Chip companies are benefiting from artificial intelligence (AI)-led demand for their products. They are also expected to gain from larger tax credits under Trump's 'big, beautiful bill,' as an incentive to boost domestic production. However, macro challenges, tariff uncertainties, rising competition, and chip export transactions have been weighing on their performance. Despite ongoing headwinds, long-term demand trends appear favorable for chipmakers, driven by the continued shift to the cloud and AI boom. Using TipRanks' Stock Comparison Tool, we placed Advanced Micro Devices (AMD), Marvell Technology (MRVL), and Intel (INTC) against each other to find the best chip stock, according to Wall Street analysts. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Advanced Micro Devices (NASDAQ:AMD) Stock Advanced Micro Devices stock has risen about 19% over the past month, bringing the year-to-date rise to 14%. Upbeat first-quarter results, strategic acquisitions to support AMD's AI ambitions, and new graphics processing units (GPUs), mainly MI350 and MI400 series, unveiled at the Advancing AI event, have driven the stock higher and addressed concerns about the company lagging behind rival Nvidia (NVDA) in the AI race. Ahead of AMD's Q2 results scheduled on August 5, several analysts are confident about strong growth in the company's data center GPU (graphics processing unit) business. Currently, analysts expect AMD to report earnings per share (EPS) of $0.49, reflecting a 29% year-over-year decline. Revenue is estimated to grow by 27% to $7.41 billion. Is AMD Stock a Buy or Sell? Recently, Melius Research analyst Ben Reitzes upgraded AMD stock to Buy from Hold and raised the price target to $175 from $110. The 4-star analyst discussed several favorable aspects, including stronger-than-anticipated demand for AMD's MI300 and MI350 series GPUs as well as early traction for the upcoming MI400 platform. Reitzes also noted the demand for Advanced Micro Devices' products in AI inferencing and moderating risks in the PC segment. He also highlighted robust deal momentum, including those with Amazon (AMZN), ChatGPT-maker OpenAI, Meta Platforms (META), and Saudi Arabia's HUMAIN. Aside from AI GPUs, Reitzes expects continued share gains in high-margin server CPUs. With 24 Buys and 10 Holds, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock. The average AMD stock price target of $133.62 indicates 3% downside risk from current levels. Marvell Technology (NASDAQ:MRVL) Stock Marvell develops application-specific integrated circuits (ASICs) that are used as AI accelerators by customers in their data centers and cloud infrastructure. These AI accelerators (or XPUs) are preferred by some customers as they can be cost-effective alternatives to Nvidia's GPUs, which are designed for more generic workloads. Marvell stock has risen 5.3% over the past month but is still down about 35% year-to-date. A guidance miss earlier this year dragged down the stock along with macro woes and tariff pressures. However, the company's market-beating Q1 FY25 results and second-quarter guidance improved investor sentiment, reflecting strength in the demand for the company's custom chips amid the AI boom. The company is optimistic about the road ahead, bolstered by the demand for custom AI chips. Management expects to gain from robust spending by hyperscalers, sovereign data center projects, and opportunities in emerging markets. What Is the Forecast for MRVL Stock? Recently, Piper Sandler analyst Harsh Kumar reiterated a Buy rating on Marvell stock with a price target of $85, saying 'Growth to be Driven by XPU Proliferation.' Following meetings with management, the 5-star analyst noted that the company's growth strategy for its XPUs is on track and is set to ramp significantly in the near to mid-term timeframe. In Kumar's view, MRVL is one of only two companies that hold the necessary intellectual property to service the leading-edge XPU market for hyperscaler customers. He continues to believe that this market will remain resilient as hyperscaler spend remains strong. Turning to Wall Street, Marvell stock scores a Strong Buy consensus rating on TipRanks, based on 27 Buys and four Holds. The average of $91.39 indicates 27% upside potential from current levels. Intel Corporation (NASDAQ:INTC) Stock Intel stock has risen 18% so far this year, as investors are hopeful of a turnaround under the leadership of the company's new CEO Lip-Bu Tan. In fact, INTC stock surged 7.2% on July 8, as investors welcomed the news of new tax credits and additional layoffs aimed at streamlining operations. The chipmaker has been struggling in recent years, as a lack of innovation, strategic missteps, and delays in product launches have led to a continued loss of share in the CPU market to AMD. CEO Tan is attempting to revive the business by enhancing efficiency, reducing costs, divesting non-core assets, and introducing new products. While investor sentiment has improved, Wall Street remains cautious on INTC stock, as several analysts await further signs of improvement at the company. Moreover, analysts are concerned that Intel may miss the opportunity to capitalize on AI-driven demand for advanced chips. Additionally, chip restrictions and tariff woes could hinder the company's ongoing restructuring efforts. Intel is scheduled to announce its second-quarter earnings on July 24. Wall Street expects Intel's Q2 revenue to decline by more than 7% to about $12 billion, while EPS is estimated to remain flat on a year-over-year basis at $0.02. Is Intel a Buy, Sell, or Hold? Recently, Truist Securities analyst William Stein reiterated a Hold rating on Intel stock with a price target of $21. The 5-star analyst stated that Intel's Foundry Direct Connect conference provided a glimpse of CEO Tan's strategy, which he believes is similar to that of his predecessor. He noted that building the company's manufacturing and foundry capabilities remains a major focus. Stein added that Tan's recent hires suggest that Intel's longer-term aspirations may resemble Broadcom's (AVGO) ASIC business. Stein is concerned that tariff-related pull-ins may impact near-term demand. Meanwhile, the analyst noted that INTC's restructuring and layoffs continue to get attention. He believes that Intel's aim is to reduce the number of management layers to simplify the company's organizational complexity. Stein expects Intel's Q2 earnings to be the next significant catalyst. He added that Q2 expectations are muted. The analyst sees earnings as more likely a positive than a negative catalyst, though his 'conviction on this matter is low.' Overall, Wall Street has a Hold consensus rating on Intel stock based on 26 Holds, four Sells, and one Buy recommendation. At $21.44, the average INTC stock price target implies a possible downside of 9.1% from current levels. See more INTC analyst ratings Conclusion Wall Street is sidelined on Intel stock and cautiously optimistic on AMD stock. Meanwhile, analysts are bullish on the growth prospects of Marvell stock, backed by AI tailwinds. They see higher upside potential in MRVL stock than in the other two chip stocks. Most analysts view the pullback in Marvell stock as an attractive buying opportunity to capitalize on the company's long-term growth story.
