AMD Stock Price Down 31%, Analysts Revised Targets Continue To Reflect Upside

AMD's stock (NASDAQ: AMD) has been the focus of many in recent times, after a fall from grace that has seen the price fall 31% over the past 12 months. Zooming out to the 5 year gives a completely different picture, but tells the story well as you will see from the chart below.

There have been a raft of analysts shifting price targets and ratings in recent weeks, with the consensus being a shift to the downside from prior lofty expectations.

Melius, a known financial services firm, downgraded AMD from a “buy” rating to a “hold” and significantly reduced its price target from $160 to $129. This adjustment suggests that while Melius sees potential in AMD, they advise investors to hold existing shares rather than buying more at this time.

Wells Fargo & Company also reduced their price target for AMD, lowering it from $205 to $165, but maintained an “overweight” rating. This indicates that Wells Fargo still sees value in AMD stock and anticipates it outperforming the market.

Adding to the mixed perspectives, Loop Capital initiated coverage on AMD with a positive “buy” rating and set a price target of $175. This suggests confidence in AMD's growth prospects. Bank of America also moderated its stance, moving from a “buy” to a “neutral” rating and cutting the price target from $180 to $155.

Meanwhile, Mizuho adjusted their AMD price target from $180 to $160 while maintaining an “outperform” rating, showing a balanced view with expected future growth.

The consensus target of $169.82 would reflect a significant potential upside from the current price action ~$118, with many holding expectations of a significant turnaround. Execution in periods to come will be key, plenty will be watching.