Advanced Micro Devices (AMD) faced disappointment from investors during its recent Advancing AI event, yet analysts remain optimistic about the company’s growth prospects.
Following the unveiling of its latest AI chips, AMD’s shares experienced a 4% decline on Thursday, as the company did not adjust its outlook or announce anticipated partnerships. However, on Friday, the stock managed to recover slightly with more than a 2% gain.
Jefferies analysts believe that although investors were hoping for clearer competition signals with Nvidia (NVDA) and a new customer announcement—along with updated AI guidance—the potential demand for AMD’s products remains promising. They highlighted a belief that AMD’s newly introduced AI chips could still enhance share gains as businesses aim to expand their AI capabilities.
While Bank of America analysts noted that AMD’s Instinct MI325X GPU is significantly behind Nvidia’s latest offering, they expressed hope that AMD’s MI350, set for release next year, would more effectively compete with Nvidia’s Blackwell architecture.
Jefferies has maintained a “buy” rating for AMD, setting a price target of $190, representing over a 13% upside from Friday’s close of $167.89. Bank of America also holds a “buy” rating with a target of $180. Overall, about 75% of the analysts tracked by Visible Alpha have “buy” or equivalent ratings on AMD, with a consensus price target of $192.13.