Advanced Micro Devices (NASDAQ: AMD) has been hit hard by the early 2026 sell-off and is down 13.92% in the stock market in the last 30 days.
The uncertainty regarding AMD shares and business performance is evident in recent Wall Street analyst price target rating updates, though not to the extent that might be expected given the valuation crash.
Bernstein updates AMD stock 12-month price target
Bernstein’s Stacy Rasgon – the institutional expert to prove the most recent update – proved no exception to the rule when she, on February 17, reiterated her previous opinion that the semiconductor giant’s equity is a ‘Hold.’
This neutral recommendation was also accompanied by a confirmation that AMD will, despite the tumult, rally later in 2026 and hit $235 in the coming 12 months.
Rasgon’s rating revision was also consistent with a broader Wall Street attitude regarding the world’s second-biggest semiconductor company.
While the most recent notes provided a roughly equal mix of ‘Hold’ and ‘Buy’ rankings, the sum of the last three months paints Advanced Micro Devices stock as a ‘Strong Buy,’ with an average price target of $286.80, per data Finbold retrieved from TipRanks on February 19.
Why Bernstein expects AMD stock to rally to $235
When Bernstein’s Stacy Rasgon first gave the $235 AMD stock price target, it was done in response to the fairly strong earnings report published at the start of February. The filing provided ample reason for optimism with a $600 million revenue forecast beat and particularly strong sales in China.
Still, the tailwinds were tempered by the relatively weak guidance and, as Rasgon herself pointed out, AMD trading at a high 25x multiple applied to fiscal year 2027 earnings per share of $9.25.
Indeed, this figure alone positions Advanced Micro Devices as the most relatively expensive player in the wider artificial intelligence (AI) sector – an especially damning indictment given the mounting fears AI has become an unprecedented bubble.
Could this shortage turbocharge an AMD stock rally
Elsewhere, AMD might find an unexpected reprieve in the consumer market. Nvidia is, allegedly, considering a retreat from new-generation gaming hardware in favor of older models and as part of the growing focus on corporate clients.
If the world’s top semiconductor company truly pulls back, a void for AMD to fill might materialize in the consumer market.
Simultaneously, and much like many other aspects of Advanced Micro Devices, the existence of such tailwinds is very tentative, in no small part due to the AI-caused shortage of memory that is driving production costs up and limiting potential industrial output.
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