Advanced Micro Devices (AMD) surged to a new all-time high on Friday, closing at $252.92. The rally continued Monday, with the stock up 1% as of this writing. Year-to-date, shares are up more than 100%, giving investors plenty to celebrate. The key question on everyone’s mind is whether this momentum can continue after such a strong run.
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So far, Wall Street appears cautiously optimistic on AMD’s growth potential. Meanwhile, TipRanks’ A.I. Stock Analysis has issued an Outperform rating, reinforcing confidence in the semiconductor outlook. The growing bullish sentiment suggests more upside could still be on the table as AMD rides the AI chip boom.
AMD Earns Outperform Rating
For context, TipRanks’ A.I. Stock Analysis delivers automated, data-driven evaluations of stocks, 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.
According to TipRanks A.I. Stock Analysis, AMD stock earns a strong score of 80 out of 100, along with an Outperform rating. The A.I. analyst has set a price target of $271.0 under the Gemini 2.5 Pro model, which implies about 7% upside from current levels.
On the other side, Wall Street analysts are a bit more cautious. Their average price target is slightly below where AMD shares currently trade, signaling expectations for a possible short-term pullback even as long-term sentiment remains positive.
AI Analyst Breaks Down Strengths and Risks for AMD
The analysis also points out both positive and negative factors affecting the company’s stock performance. Among the positives, AMD’s revenue is growing quickly, showing strong demand for its products and supporting future expansion.
Additionally, the company’s partnership with OpenAI boosts investor confidence by strengthening its role in AI chips. Under the deal, OpenAI plans to deploy up to 6 gigawatts of AMD GPUs over the next few years, expanding AMD’s presence in AI infrastructure. The company also generates strong cash flow, which helps fund new projects and provides stability during market swings. In Q2 2025, AMD reported a record free cash flow of over $1 billion.
On the other hand, AMD still faces a few hurdles. Export restrictions could limit sales in important international markets and put pressure on revenue. The recent drop in data center AI revenue also shows that AMD still needs to strengthen its position in a key growth area.
Is AMD Stock a Buy or Sell?
With 29 Buys and 10 Holds, Advanced Micro Devices stock scores a Moderate Buy consensus rating. The average AMD stock price target of $249.92 indicates 1.7% downside from current levels.
