Stock of the Day - June 26, 2025

Advanced Micro Devices (AMD)

$143.61

+$0.21 (+0.1%)

Market Cap: $232.85B

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.

It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.

Advanced Micro Devices Bull Case

Here are some ways that investors could benefit from investing in Advanced Micro Devices, Inc.:

The company reported a revenue of $7.44 billion in the latest quarter, exceeding analysts' expectations of $7.10 billion, indicating strong financial performance.
Advanced Micro Devices, Inc. has a return on equity of 8.30%, which suggests effective management in generating profits from shareholders' equity.
The firm has authorized a stock repurchase plan of $6.00 billion, which often signals that management believes the stock is undervalued, potentially leading to an increase in stock price.
Recent analyst upgrades have raised the price target for the stock, with Barclays increasing it from $110.00 to $130.00, reflecting positive market sentiment.
The current stock price is approximately $95.47, which may present a buying opportunity for investors looking to enter at a lower price point before potential growth.

Advanced Micro Devices Bear Case

Investors should be bearish about investing in Advanced Micro Devices, Inc. for these reasons:

Despite strong revenue growth of 35.9% year-over-year, the net margin stands at 8.03%, which may indicate that profitability is not keeping pace with revenue growth.
Insider ownership is relatively low at 0.06%, which could suggest a lack of confidence from executives in the company's future performance.
Some analysts have downgraded their price targets, with Susquehanna reducing theirs from $150.00 to $135.00, indicating mixed sentiments in the market.
The semiconductor industry is highly competitive, and Advanced Micro Devices, Inc. faces significant pressure from rivals, which could impact future growth and market share.
With a consensus rating of "Moderate Buy," there may be a lack of overwhelming confidence among analysts, which could lead to volatility in stock performance.

Analysts Supercharge AMD Stock Ahead of Q2 AI Catalyst

Written By Thomas Hughes on 6/26/2025

AMD Logo

Advanced Micro Devices’ (NASDAQ: AMD) news cycle gained momentum following its AI event in early June, and the share prices are following suit.

The takeaway is that the MI350 line lives up to the expectation, but the upcoming MI400 is the critical development.

It is the culmination of AMD’s lean into AI, GPU technology, and scalability, marking an inflection point for the semiconductor business.

It is widely accepted that AMD GPU technology offers several advantages over NVIDIA’s (NASDAQ: NVDA), including a better cost-to-performance ratio and superior memory capacity, which are well-suited for larger and more complex AI workloads.

The inflection will come when AMD delivers a rack-scale solution to its end-markets, opening the gate to a flood of potential consumers looking to capitalize on it.

AMD stock chart

Analysts Supercharge AMD’s Market: Lead It Into A Complete Reversal

The analysts’ response to the news is the driving force in the news cycle. MarketBeat tracked nine revisions within two weeks of the event, and all either reiterated their prior ratings and price targets or increased price targets, upgraded, or both. The net result is that current coverage for AMD stock (revisions issued within the last 12 months) spiked to a record high on MarketBeat’s platform.

The analysts' sentiment also firmed, with several Strong Buy or Outperform equivalents entering the mix. Regarding the consensus price target, the rebound in its trend, which began earlier this year, gained momentum. It is rising along with the stock price rebound in late June, with the high-end range aligning with the record highs set in early 2024, providing strong support for the market.

Notable revisions include the upgrades from Melius and CFRA. Together, they support the view that AMD can gain market share from NVIDIA and provide a timeline for this event. Melius believes AMD’s product offerings will be more appealing to hyperscalers and governments, and the rising demand for inferencing will benefit its business.

The firm's analysts upgraded to Strong Buy from Hold and set their target at $175, a 20% gain from the critical resistance point in late June. This indicates increased confidence in what will be a historic stock price run.

CFRA is equally bullish, upgrading the stock to Strong Buy from Buy, citing the product pipeline in the note. They believe AMD’s competitive edge is improving and that it will close the gap with NVIDIA in 2026. Underlying demand, amplified by client wins will drive market share gains as evidenced by recent partnerships with Oracle (NYSE: ORCL), Meta Platforms (NASDAQ: META), and OpenAI. They set a target of $165, increasing it roughly 30% in a single revision.

The Catalyst and Outlook for AMD’s Stock Price Reversal is the Q2 Results

The upcoming FQ2 earnings report, expected in late July, could propel this stock to new highs.

The analysts have a high bar, expecting growth to accelerate to nearly 40% according to MarketBeat’s reported consensus, but outperformance is possible due to the industry trends.

However, it is the guidance that moves stocks and sustains the gains; if AMD’s guidance affirms the faith put into it by analysts, new highs are likely and may come before the year’s end.

The technical action is robust. AMD’s market confirmed a bottom earlier this year as the analysts' sentiment shifted, and it is now in reversal mode. The move above the cluster of EMAs in June is critical; the next key trigger point is the resistance target near $147.50.

It aligns with price action in 2024 and may cap gains until the Q2 report is released. However, once crossed, regardless of the timing, a move to the $175 to $185 region is likely.

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