Chip giant AMD (NASDAQ:AMD) slid in morning trading after top-rated Northland Securities analyst Gus Richard downgraded the stock to a Hold from a Buy. The analyst stated that expectations about AMD’s business growth due to AI are illogically enthusiastic.
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Richard expects AI-related revenue to be around $125 billion in 2027, with AMD likely to generate $16 billion in AI revenue at a 13% market share. He believes AMD’s shares reflect higher AI revenue in 2027. The analyst also anticipates modest semiconductor revenue growth outside of AI for AMD.
The growing interest in AI has seen AMD stock gaining by more than 8% over the past five trading sessions.
What is AMD’s Target Price?
Analysts remain bullish about AMD stock, with a Strong Buy consensus rating based on 26 Buys and eight Holds. The average AMD price target of $149.77 implies a downside potential of 9.4% at current levels.
