TLDR
- AMD stock received multiple analyst upgrades following AI event, with price targets reaching $175-200
- New tree rendering technology reduces graphics card VRAM requirements from 34.8 GB to just 52 KB
- Q2 earnings in late July expected to show nearly 40% growth acceleration
- Recent partnerships with Oracle, Meta, and OpenAI strengthen AMD’s competitive position
- Stock up 18.69% year-to-date despite 10.08% decline over past 12 months
Advanced Micro Devices has captured renewed attention from Wall Street analysts following its AI event in early June. The semiconductor company’s stock price has gained momentum alongside the positive analyst coverage.
The MI350 line met expectations, but the upcoming MI400 represents the critical development for AMD’s future. This product marks AMD’s full commitment to AI, GPU technology, and scalability in the semiconductor business.
AMD’s GPU technology offers several advantages over NVIDIA’s offerings. The company provides a better cost-to-performance ratio and superior memory capacity for larger AI workloads.
The real inflection point will come when AMD delivers rack-scale solutions to end markets. This development could open access to a much larger pool of potential customers.
Analyst Upgrades Drive Stock Momentum
MarketBeat tracked nine analyst revisions within two weeks of the AI event. All revisions either maintained prior ratings or increased price targets and upgrades.
The analyst sentiment has strengthened with several Strong Buy ratings entering the coverage. The consensus price target trend has rebounded and gained momentum through late June.
Melius Research delivered one of the most bullish upgrades. The firm moved AMD to Strong Buy from Hold with a $175 price target, representing a 20% gain from late June resistance levels.
Melius believes AMD’s product offerings will appeal more to hyperscalers and governments. Rising demand for inferencing should benefit the company’s business model.
CFRA provided equally optimistic coverage with an upgrade to Strong Buy from Buy. The firm cited AMD’s improving product pipeline in their analysis.
CFRA analysts believe AMD will close the competitive gap with NVIDIA by 2026. Recent partnerships with Oracle, Meta Platforms, and OpenAI support this market share gain thesis.
New Graphics Technology Shows Innovation Push
AMD announced breakthrough tree rendering technology that drastically reduces graphics card load requirements. The new process renders scenes using only 52 KB of VRAM compared to traditional methods requiring 34.8 GB.
This technology could allow gamers to achieve better graphics performance on less expensive hardware. The development aligns with AMD’s strategy to appeal to budget-conscious consumers in competition with NVIDIA.
The rendering technology may take time to see widespread adoption in the gaming industry. However, it demonstrates AMD’s continued innovation efforts and technological advancement.
AMD stock remained largely unchanged following the tree rendering announcement on Thursday. The market reaction suggests investors are focused on the upcoming earnings catalyst.
Q2 Earnings Expected to Drive Next Move
The Q2 earnings report scheduled for late July represents the next major catalyst for AMD stock. Analysts expect growth to accelerate to nearly 40% based on current consensus estimates.
Industry trends suggest outperformance is possible for the quarter. However, guidance will be the key factor in sustaining any stock gains.
Technical analysis shows AMD confirmed a bottom earlier this year as analyst sentiment improved. The stock moved above key moving averages in June, marking a critical technical development.
From most hated to parabolic in two months. $AMD pic.twitter.com/orTRWbVHMQ
— TrendSpider (@TrendSpider) June 26, 2025
The next resistance target sits near $147.50, aligning with 2024 price action levels. Once this level breaks, analysts expect a move toward the $175-$185 range.
Wall Street maintains a Moderate Buy consensus rating based on 24 Buy and 10 Hold recommendations. The average price target stands at $132.17, though recent upgrades suggest this may rise.
AMD stock has gained 18.69% year-to-date but remains down 10.08% over the past 12 months. Recent analyst upgrades from Melius and CFRA set price targets at $175 and $165 respectively.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
