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Advanced Micro Devices (AMD) has been a quiet powerhouse in the semiconductor world, with its chips driving everything from PCs and gaming consoles to data center servers and aerospace tech. But while the artificial intelligence (AI) boom lifted many boats, AMD stock has lagged over the past year, weighed down by its struggle to grab a meaningful slice of the surging AI chip market — an arena where rival chip giant Nvidia (NVDA) has stolen the spotlight.
That narrative, however, is starting to shift. AMD is pushing back in 2025 with fresh momentum. A strong first-quarter earnings report in May, strategic acquisitions, and the debut of its new Instinct MI350 Series GPUs last month are breathing new life into shares. Investor sentiment is beginning to shift in AMD’s favor, and so is the tone on Wall Street.
In fact, HSBC recently doubled its price target from $100 to $200 on AMD, calling the new MI350 chips a real competitor to Nvidia’s latest Blackwell lineup. With investor confidence rebounding and next-gen chips in the cards, AMD is closing in on its biggest rival. And with such developments in play, it seems like an opportune time to take a closer look at AMD stock.
About Advanced Micro Devices Stock
For more than 55 years, Advanced Micro Devices has been at the forefront of innovation in high-performance computing, graphics, and visualization. In the GPU space, where Nvidia has long held the crown, AMD remains the only serious alternative with the scale and capability to compete. While Nvidia continues to dominate among hyperscalers thanks to its performance edge despite the hefty price tag, AMD is making a strong case for change.
Last month, the company unveiled a new lineup of chips that challenge Nvidia’s edge, starting with the Instinct MI350 Series GPUs. And the momentum doesn’t stop there. AMD also gave a sneak peek at Helios, a next-gen rack-scale system built around its upcoming MI400 Series GPUs. Designed to deliver better price and performance than Nvidia, Helios is expected in 2026 and already turning heads in the data center world.
Major players like ChatGPT maker OpenAI, Meta Platforms (META), and Microsoft (MSFT) have already committed to AMD’s latest chips, signaling a shift that could reshape the AI hardware landscape. The company’s market capitalization presently stands at around $237 billion.
Despite a sharp 20% decline over the past one year falling well behind the S&P 500 Index’s ($SPX) modest 12% gain, AMD has come roaring back in 2025. The stock has not only clawed its way out of negative territory but is now up 21% year-to-date (YTD), outshining the broader market’s 6.4% rise so far this year. The real spark, however, has come in the last three months. AMD has skyrocketed an impressive 57% in that short span, fueled by renewed investor optimism, bullish analyst upgrades, and growing excitement around its latest AI-focused chips.
Advanced Micro Devices’ Q1 Earnings Snapshot
The chipmaker kicked off fiscal 2025 with a strong first-quarter earnings report on May 6, which blew past Wall Street’s top- and bottom-line expectations. AMD posted revenue of $7.4 billion for the quarter, marking a robust 36% year-over-year (YOY) jump and surpassing analyst forecasts of $7.1 billion. On the bottom line, the results were just as impressive. Adjusted EPS came in at $0.96, up 55% from the same quarter last year and comfortably ahead of the $0.93 consensus estimate.
A major growth engine behind AMD’s strong quarter was, of course, its Data Center segment, which brought in $3.7 billion in revenue, soaring 57% YOY. The company credited the surge to rising demand for its high-performance Epyc processors and Instinct GPUs, both of which are gaining traction in AI and cloud workloads.
The Client and Gaming segment, which covers chips for laptops, gaming PCs, and consoles, also delivered solid growth. Revenue for the segment climbed 28% YOY to $2.9 billion, reflecting steady consumer demand. Leading the charge was the Client division, which saw revenue surge 68% from the prior year, fueled by strong demand for AMD’s latest generation of PC and laptop chips.
However, the segment wasn’t without its weak spots. Gaming revenue fell 30% on an annual basis as console chip demand softened amid a slower upgrade cycle. Nevertheless, AMD followed up its strong Q1 with a bullish Q2 revenue forecast of $7.4 billion, plus or minus $300 million. It also expects a non-GAAP gross margin of 43%, even after factoring in around $800 million in inventory charges related to new export controls.
“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025,” noted CEO Dr. Lisa Su.
What Do Analysts Think About Advanced Micro Devices Stock?
On July 10, AMD stock popped almost 4.2% after HSBC analysts upgraded their rating from “Hold” to “Buy” and doubled their price target to a Street-high $200. The move came after analysts were impressed with the company’s latest Instinct MI350 Series GPUs, which they said deliver performance levels capable of rivaling Nvidia’s powerful Blackwell chips.
“With the recent launch of the MI350 series, we were pleasantly surprised with the performance upgrades which imply that the MI350 series can compete with Nvidia latest-gen HGX B200 AI GPU,” HSBC analysts noted. HSBC also pointed out that the improved performance justifies a much higher pricing premium than initially expected, potentially boosting AMD’s earnings in both 2025 and 2026.
HSBC believes AMD could see even more upside next year with the launch of its MI400 series, which is shaping up to be a serious contender to Nvidia’s upcoming Vera Rubin platform due out in the second half of 2026. Overall, AMD is gaining favor on Wall Street, with the stock carrying a consensus rating of “Moderate Buy” as optimism builds around its AI-driven growth strategy.
Of the 43 analysts offering recommendations, a majority of 28 advocate for a “Strong Buy" rating, two suggest a “Moderate Buy,” and the remaining 13 analysts play it safe with “Hold" ratings. While AMD stock already trades at a premium to its average analyst price target, HSBC’s Street-high target of $200 suggests that shares can still rally as much as 37% from current levels.
