Chipmaker Advanced Micro Devices (AMD) is scheduled to announce its third-quarter earnings on November 4. Ahead of the results, TipRanks’ AI Analyst Aria Wafelle (under the GPT-4o model) raised the price target on AMD stock to $295 from $261, while maintaining an Outperform (Buy) rating. The new target suggests about 14% upside from current levels.
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Notably, AMD shares were up 2% in pre-market trading today and have surged about 113% year-to-date. According to TipRanks A.I. Stock Analysis, AMD earns a strong score of 77 out of 100, reflecting solid financial and technical performance.
For context, TipRanks’ AI Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock’s potential. Moreover, TipRanks’ A.I.-driven rating combines insights from multiple models, including OpenAI’s (PC:OPAIQ) GPT-4o and Google’s (GOOGL) Gemini, to offer investors a clearer view of a stock’s potential.
TipRanks A.I. Model Sees Strong Growth, but Flags Some Risks
The TipRanks A.I. analysis points to strong financial performance and positive technical signals, while noting that AMD’s high valuation could pose risks if growth slows.
Strengths
AMD’s revenue growth shows solid demand for its chips and steady expansion in major markets. Its partnership with OpenAI strengthens AMD’s position in the AI space, boosting long-term potential in GPUs and data center infrastructure. The company also generates strong cash flow, allowing it to fund new projects and stay flexible during market shifts.
Key Weaknesses
AMD still faces pressure from export restrictions, which could limit sales in some international markets and weigh on revenue. The recent drop in data center AI revenue also highlights a gap in AMD’s competitive position. Still, the AI model sees AMD’s focus on AI and GPUs as a solid base for future growth.
What to Expect on November 4
In addition to the AI analyst, Wall Street is also optimistic about the company’s ability to capture the demand for artificial intelligence (AI) chips. They expect AMD’s Q3 earnings per share (EPS) to grow by 27.2% to $1.17 and revenue to increase by 28.3% to $8.75 billion.
Is AMD Stock a Buy or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 29 Buys and 10 Holds. The average AMD stock price target of $249.92 indicates a possible downside of 3.8% from current levels.
