Advanced Micro Devices (NASDAQ: AMD) has largely failed to capitalize on the artificial intelligence (AI) boom — despite it being the dominant narrative in the financial markets for the past two years. AMD stock closed at a price of $122.84 on Friday, January 24 — by press time on January 27, prices had dipped to $117.11. This latest 4.66% drop has brought year-to-date (YTD) losses up to 3.05%.
While the semiconductor company’s largest rival, Nvidia (NASDAQ: NVDA) saw greater losses, it was trading at a higher valuation. Most semiconductor stocks saw greater losses than AMD did on January 27 — owing to the release of Chinese large language model (LLM) DeepSeek.
However, despite the stark selloff, plenty of eminent Wall Street firms remain bullish on the sector. With the impressive returns it has secured over the past two years, it’s little wonder that equity researchers have remained bullish on NVDA stock — but perhaps surprisingly, despite its ongoing struggles, that optimism has also extended to AMD stock.
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Wedbush moderates outlook on AMD stock — but remains bullish
On January 27, Wedbush analyst Matt Bryson reiterated a prior ‘Outperform’ rating — while simultaneously cutting his price target on Advanced Micro Devices stock to $150 from $200. If met, the researcher’s price forecast would equate to a 28.08% upside from current prices.
In a note shared with investors, Bryson clarified that Wedbush reduced expectations surrounding the company’s artificial intelligence graphics processing unit (GPU) sales.
Furthermore, he added that the effect would be partially offset by increased server expectations. Finally, the analyst closed out his note by opining that, while there are some signs that AMD is moderating its build expectations, the changes are already baked into buy-side expectations.
While most firms have yet to react to the latest developments, the average price target set by Wall Street researchers for AMD shares is higher than Bryson’s, at $173.28. Even the Street low $110 price target, set by HSBC on January 8, would entail a relatively minor drop from the stock’s price as of press time.
Finally, Wedbush’s latest move echoes the reevaluation that Citi (NYSE: C) made on January 21, when the firm likewise reiterated a ‘Moderate Buy’ rating on AMD stock while cutting its price target from $200 to $175.
Readers should note that, at present, it is still difficult to ascertain the long-term impact China’s overnight entry into the AI market will have. For a more grounded, material outlook, investors should keep an eye out for AMD’s next earnings call, which is due February 4.
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