TLDR
- AMD stock gained 43% in 2025 but dropped after mixed Q2 results due to declining AI business revenue from U.S. export curbs blocking China sales
- Palantir surged 147% in 2025 after beating Q2 expectations with revenue up 48% year-over-year, exceeding $1 billion for the first time
- AMD has a Moderate Buy rating with average price target of $181.36, suggesting 4.98% upside potential
- Palantir has a Hold rating with average price target of $154.56, indicating 17.33% downside from current levels
- Palantir raised full-year revenue outlook to $4.142-4.150 billion and expects U.S. commercial revenue to grow 85% year-over-year
Both Advanced Micro Devices and Palantir Technologies reported their second-quarter earnings recently, showing different paths in the artificial intelligence market. Wall Street analysts have updated their ratings and price targets for both companies following these results.
AMD stock has climbed 43% so far in 2025, driven by strength in its data center business. However, shares pulled back after the company delivered mixed second-quarter results that concerned investors.
The chip maker’s revenue exceeded Wall Street expectations, but earnings only met forecasts. The main worry came from a decline in artificial intelligence business revenue during the quarter.
AMD Faces Export Challenges
AMD explained that its Q2 AI revenue fell due to U.S. export restrictions that blocked MI308 chip sales to China. The company also cited the transition to its next-generation chips as another factor affecting revenue.
Despite these challenges, many analysts remained positive on AMD’s prospects. Goldman Sachs analyst James Schneider raised his price target to $150 from $140 but maintained a Hold rating.
Schneider expressed caution about AMD’s ability to grow its data center GPU business. He also raised concerns about rising costs related to AI development and competition.
Barclays analyst Tom O’Malley took a more optimistic view, lifting his price target to $200 from $130. He kept his Buy rating, citing strong demand driven by artificial intelligence applications.
O’Malley expects AMD’s MI-series GPUs to reach a $2.3 billion run rate by the end of 2025. He also forecasts data center revenue will top $10 billion by 2026.
Palantir Delivers Strong Growth
Palantir stock has surged 147% so far in 2025, powered by growing demand for its AI-powered analytics tools. The data analytics company exceeded Wall Street expectations in its second quarter.
Revenue jumped 48% year-over-year to over $1 billion, marking the first time the company crossed this threshold. Palantir also raised its full-year 2025 revenue outlook to between $4.142 billion and $4.150 billion.
The company showed strong growth across both its government and commercial business segments. This performance impressed analysts who had been watching the company’s expansion efforts.
Wedbush analyst Dan Ives called the quarter a “blowout across the board.” He maintained his Outperform rating and $160 price target on the stock.
Ives highlighted Palantir as one of his top technology picks for 2025. He pointed to growing momentum in both federal government contracts and commercial markets.
U.S. commercial revenue emerged as a key growth driver for Palantir. The company now expects this segment to climb 85% year-over-year in fiscal 2025.
This forecast represents a major increase from Palantir’s previous estimate of 68% growth. The higher projection suggests faster adoption of the company’s AI tools in the private sector.
Palantir also raised its full-year adjusted operating income forecast to between $1.912 billion and $1.920 billion. The previous range was $1.711 billion to $1.723 billion.
Wall Street currently has a Moderate Buy consensus rating on AMD stock based on 26 Buy ratings and 12 Hold ratings. The average price target of $181.36 suggests 4.98% upside potential.
Palantir carries a Hold consensus rating based on five Buy ratings, 13 Hold ratings, and two Sell ratings. The average price target of $154.56 indicates possible downside of 17.33% from current trading levels.
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