TLDR
- AMD has gained 35% in 2025 while Palantir surged 107%, but analysts see more upside potential in AMD
- Wall Street gives AMD a “Moderate Buy” rating with 13.60% upside potential versus Palantir’s “Hold” rating with slight downside risk
- AMD posted 32% revenue growth in Q2 and received a recent upgrade from Truist Securities to $213 price target
- Palantir beat Q2 expectations with 48% revenue growth, reaching $1 billion in quarterly revenue for the first time
- AMD holds over 20% of the server CPU market, up from less than 1% previously, while Palantir expects 85% growth in U.S. commercial revenue
Two major artificial intelligence stocks are competing for investor attention as the AI boom continues. Advanced Micro Devices and Palantir Technologies have both posted strong gains in 2025, but Wall Street analysts have different views on their future prospects.
AMD has climbed 35% this year as investors bet on the chipmaker’s ability to capture more AI processor demand. The company recently partnered with IBM to build quantum computing systems that combine AMD chips for climate research and drug discovery applications.
Palantir has outperformed with a 107% surge in 2025, driven by strong demand for its AI-powered data analytics platforms. The software company serves both government agencies and commercial clients across healthcare, energy, and finance sectors.
Earnings Performance Shows Different Strengths
AMD delivered mixed second quarter results with revenue jumping 32% year-over-year. The company provided positive guidance for third quarter sales that pleased investors. However, earnings per share only met analyst forecasts without exceeding expectations.
Palantir beat Wall Street expectations in its second quarter report. Revenue climbed 48% year-over-year to cross $1 billion for the first time in company history. The data analytics firm raised its full-year 2025 revenue outlook to between $4.142 billion and $4.150 billion.
Both companies showed strong growth momentum in their core markets. AMD continues gaining market share in server processors while Palantir expands its commercial customer base beyond traditional government contracts.
Analyst Upgrades Signal Confidence
Truist Securities analyst William Stein upgraded AMD to Buy from Hold last week. He raised the price target from $173 to $213, citing rising data center demand and AMD’s stronger position in AI markets.
Stein highlighted AMD’s progress in server processors, where the company now holds over 20% market share. This represents massive growth from less than 1% market share in previous years while Intel faced various challenges.
Wedbush analyst Dan Ives maintained his Outperform rating on Palantir with a $160 price target. He called the second quarter results a “blowout across the board” and named Palantir one of his top tech picks for 2025.
Market Share Growth Drives AMD Optimism
AMD’s server processor gains have impressed analysts watching the competitive chip landscape. The company’s “Rome” processors helped drive this market share expansion during a period when Intel struggled with execution issues.
Looking ahead, Stein raised his 2027 earnings forecast to $7.89 per share for AMD. He pointed to the upcoming MI355 chip as a key growth driver for the company’s AI processor business.
Palantir expects its U.S. commercial revenue to grow 85% year-over-year in fiscal 2025. This forecast exceeds the company’s previous projection of 68% growth in the commercial segment.
Wall Street Consensus Shows Clear Preference
AMD receives a Moderate Buy consensus rating from analysts based on 25 Buy recommendations and 10 Hold ratings. The average price target of $184.74 suggests 13.60% upside potential from current trading levels.
Palantir holds a Hold consensus rating with five Buy ratings, 13 Hold ratings, and two Sell recommendations. The average price target of $154.47 indicates possible downside of about 1.43% from current levels.
The different analyst ratings reflect Wall Street’s view that AMD offers better risk-adjusted returns. Despite Palantir’s stronger year-to-date performance, concerns about AI bubble fears and high valuations have created caution among analysts.
Trade tensions between the U.S. and China remain a risk factor for AMD’s business. Strong competition in the chip sector also poses challenges for maintaining market share gains going forward.
Both companies continue expanding their AI capabilities as demand grows across enterprise and government markets. AMD focuses on hardware infrastructure while Palantir provides software analytics solutions for processing complex data sets.
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