Chipmaker Advanced Micro Devices (AMD) has recently shared its financial results for the second quarter of 2025, but they fell short of what investors had hoped for. While AMD’s revenue for this quarter beat some expectations, it lined up closely with forecasts, raising concerns about a drop in revenue from its AI sector. Despite this, many analysts stayed optimistic about AMD stocks following the Q2 report. However, some have voiced worries regarding AMD’s AI and datacenter revenue and increasing costs. As a result, Wall Street’s average price targets suggest only a modest rise from current stock levels. Notably, AMD stocks have increased by 43% this year.
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Leading up to the second quarter results, there was quite a buzz around AMD’s AI ventures, especially after several key AI events. AMD unveiled a new GPU that had rekindled investor confidence, particularly after concerns that the company was lagging behind Nvidia (NVDA) in the AI race. Unfortunately for investors, the actual results from the second quarter were disappointing, particularly regarding growth in the data center and AI revenues. AMD attributed a decline in its technology sales to US export restrictions on the MI308 to China and delays in rolling out next-gen chips.
AMD’s second quarter results raise some concerns
Even with these mixed results for Q2, bullish analysts remain hopeful about AMD’s growth prospects in both CPU and GPU markets, as well as potential AI opportunities. Nevertheless, certain analysts are proceeding with caution due to ongoing hurdles.
For instance, Goldman Sachs analyst James Schneider increased the AMD stock price target from $140 to $150 but maintained a holding recommendation. He noted that AMD has been gaining traction with its data center GPU solutions and expects the MI355 to boost quarter-over-quarter growth in the third quarter’s datacenter segment, possibly continuing this trend into the fourth quarter of 2025.
Schneider is generally optimistic about AMD’s ability to capture more market share in the PC and enterprise server sectors soon, yet he holds a neutral view on the stock due to apprehensions surrounding the necessary operating costs linked to its AI initiatives.
Meanwhile, Morgan Stanley analyst Joseph Moore has cut AMD’s stock price target from $185 to $168 but also maintains a holding rating. Moore stated that while the quarter appeared strong across the board, there are doubts about whether the bullish sentiment is sufficient. He pointed out that AMD’s comments about the timelines for resuming shipments to China were “more vague than expected.” Overall, Moore’s revised price target reflects growing skepticism concerning demand from China and a perceived lack of direct benefits from AI.
Are AMD stocks purchased now or are they bought and sold?
Overall, Wall Street holds a cautiously optimistic stance on AMD, with a moderate buy consensus based on 25 buy ratings and 12 holds. The average target price for AMD shares is set at $180.78, suggesting a potential upside of about 4.6% from present levels.
