Copyright Barchart
Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. Valued at $418.7 billion by market cap, the company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services. Shares of this semiconductor giant have significantly outperformed the broader market over the past year. AMD has gained 61.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.3%. In 2025, AMD stock is up 113.6%, surpassing the SPX’s 17.2% rise on a YTD basis. Zooming in further, AMD’s outperformance is also apparent compared to the iShares Semiconductor ETF (SOXX). The exchange-traded fund has gained about 32.5% over the past year. Moreover, AMD’s triple-digit gains on a YTD basis outshine the ETF’s 41.3% returns over the same time frame. AMD's strong performance can be attributed to record sales of Ryzen and EPYC processors, as well as robust demand in the gaming segment. Revenue exceeded expectations, driven by significant growth in the AI, data center, and GPU segments. The company's roadmap includes expanding its AI data center business, with significant revenue growth potential. AMD anticipates further growth with the launch of its MI350 GPU line and the development of the next-generation MI400 series. Strategic investments in hardware and software capabilities, including recent acquisitions, are strengthening AMD's AI ecosystem. The company's involvement in sovereign AI initiatives worldwide is also contributing to its growth. On Aug. 5, AMD reported its Q2 results, and its shares closed down more than 6% in the following trading session. Its adjusted EPS of $0.48 exceeded Wall Street expectations of $0.47. The company’s revenue was $7.7 billion, beating Wall Street's $7.4 billion forecast. For Q3, AMD expects revenue in the range of $8.4 billion to $9 billion. For the current fiscal year, ending in December, analysts expect AMD’s EPS to grow 19.9% to $3.14 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on another occasion. Among the 44 analysts covering AMD stock, the consensus is a “Strong Buy.” That’s based on 30 “Strong Buy” ratings, two “Moderate Buys,” and 12 “Holds.” This configuration is more bullish than a month ago, with an overall “Moderate Buy” rating, consisting of 27 analysts suggesting a “Strong Buy,” and one analyst advising a “Moderate Buy.” On Oct. 23, Rakesh reiterated an “Outperform” rating on AMD and kept a $275 price target, implying a potential upside of 6.6% from current levels. While AMD currently trades above its mean price target of $253.70, the Street-high price target of $310 suggests a 20.2% upside potential.
