Advanced Micro Devices (NASDAQ:AMD) and Affirm Holdings (NASDAQ:AFRM) are among the most discussed stocks on the social media platform Reddit. While these stocks are buzzing on Reddit and have significantly gained mentions, they have witnessed a pullback in August 2023. Despite the decline, AMD stock has a bullish signal from analysts. On the other hand, Wall Street analysts remain on the sidelines for AFRM stock.
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Against this backdrop, let’s delve into these trending Reddit stocks.
Will AMD Stock Go Up Again?
AMD stock has gained nearly 57% year-to-date due to the growing AI (Artificial Intelligence) deployments in the data center market. Even so, its stock fell by about 11% in August as its Q3 sales outlook of $5.7 billion came below analysts’ expectations.
Nonetheless, AI represents a multibillion-dollar growth opportunity for the company across several end markets, keeping analysts bullish on the stock. In addition, the recovery in the PC demand will support its financials and, in turn, its stock price.
Given the strong tailwinds from AI-led demand, AMD stock has received 25 Buy and seven Hold recommendations, reflecting a Strong Buy consensus rating. Moreover, analysts’ average price target of $141.90 implies significant upside potential from current levels.
What is the Forecast for AFRM Stock?
Affirm Holdings stock is down about 29% in August 2023. Nonetheless, the company is poised to benefit from improved credit performance, led by the continued decline in delinquencies. The company recently delivered better-than-expected Q4 results, wherein its top line came ahead of the Street’s forecast. Further, the financial services company’s loss per share was lower than analysts’ expectations, which is positive.
What stood out is the continued decline in delinquencies, which stood at 2.1% at the end of Q4 compared to 2.7% in Q1.
The company is expanding its reach by growing its merchant base and focusing on delivering profitable growth. However, higher funding costs and increased provision for credit losses remain a drag, keeping analysts sidelined.
With three Buy, three Hold, and four Sell recommendations, AFRM stock has a Hold consensus rating on TipRanks. Analysts’ average price target of $15.55 implies 12.60% upside potential from current levels.
Bottom Line
Both AMD and AFRM stocks are trending on Reddit and have good long-term growth prospects. However, analysts are optimistic about AMD’s growth due to solid growth opportunities from AI and the expected recovery in the PC market. Contrary to this, analysts hold a cautious stance on AFRM due to the potential impact of a high-interest rate environment. This could lead to escalated transaction costs for AFRM and pressure its margins.
To conclude, analysts favor AMD over AFRM, with the average price target implying higher upside potential from current levels.
