TLDRS
- AMD shares remain above Wall Street’s average target despite recent declines.
- Heavy selling across semiconductor stocks triggered a volatile trading week for AMD.
- UBS maintained a bullish stance, raising its AMD price target to $670.
- Strong data center growth continues supporting AMD’s long-term AI investment thesis.
Advanced Micro Devices (NASDAQ: AMD) enters the final week of June under pressure after a broad semiconductor selloff dragged shares lower, yet the chipmaker continues to trade above Wall Street’s average price target, underscoring investor confidence in the company’s long-term growth prospects.
AMD closed Friday’s session at $521.58, down 2.06% for the day. The decline capped a turbulent week in which the stock retreated 5.4% from Monday’s close and finished roughly 7.4% below its recent 52-week intraday peak of $562.99 reached earlier in the week.
Despite the pullback, AMD still trades above the average analyst price target of $502.92, suggesting that market participants remain optimistic about the company’s earnings trajectory and exposure to the artificial intelligence boom.
Advanced Micro Devices, Inc., AMD
Chip Selloff Hits AMD
The latest weakness in AMD shares coincided with a broader retreat across semiconductor equities. Nvidia (NASDAQ: NVDA) ended Friday down 1.96%, while Intel (NASDAQ: INTC) dropped 3.67%.
Exchange-traded funds tracking the chip sector also posted sharp losses. The VanEck Semiconductor ETF (NASDAQ: SMH) declined 4.32%, while the iShares Semiconductor ETF (NASDAQ: SOXX) fell 5.74% during the session.
Although the broader technology sector also finished lower, losses were less severe. The Invesco QQQ Trust ETF slipped 1.35%, while the SPDR S&P 500 ETF Trust lost 0.50%.
Trading activity in AMD remained elevated throughout the selloff. Approximately 52.7 million shares changed hands on Friday, significantly above the stock’s 65-day average trading volume of 37.8 million shares. Elevated volume during periods of weakness often signals heightened investor repositioning as traders reassess valuations and growth expectations.
Analysts Remain Bullish
Even with the recent correction, several analysts continue to see substantial upside potential for AMD.
UBS analyst Timothy Arcuri recently reiterated a Buy rating on the stock and significantly increased his price target to $670 from $455. The revised target implies notable upside from current levels and reflects confidence in AMD’s expanding position within the data center and AI infrastructure markets.
UBS expects AMD’s server CPU revenue to reach approximately $16 billion in 2026 before climbing to $23 billion in 2027 and $29 billion in 2028. Longer term, the investment bank forecasts server CPU sales could approach $50 billion by 2030.
The bullish outlook comes despite growing concerns across the semiconductor industry regarding capital expenditures, profitability, and whether AI-related spending can maintain its current pace.
Market strategists have noted that enthusiasm surrounding artificial intelligence remains heavily sentiment-driven. However, ongoing investment in data center infrastructure continues to provide fundamental support for companies supplying high-performance computing hardware.
Data Center Growth Drives Story
AMD’s latest quarterly results reinforced the importance of its data center business to the company’s overall performance.
During the first quarter, AMD generated $10.3 billion in revenue, representing a 38% increase compared with the same period a year earlier. Revenue from the company’s Data Center segment surged 57% year-over-year to $5.8 billion.
Chief Executive Officer Lisa Su previously described the Data Center business as the primary contributor to both revenue growth and profitability, highlighting the segment’s growing significance as enterprises expand AI workloads and cloud computing capacity.
Earnings expectations have also moved higher. Consensus forecasts now project AMD will earn $7.47 per share in 2026, up from estimates of $6.77 three months ago. Expectations for 2027 have similarly increased, with analysts forecasting earnings per share of $13.31 compared with prior estimates of $10.95.
Investors Await Key Catalysts
Looking ahead, investors are preparing for several important catalysts that could influence AMD’s near-term direction.
Macroeconomic data, particularly the upcoming U.S. employment report, may affect expectations surrounding Federal Reserve policy and broader market sentiment. Strong economic data could complicate the outlook for interest rates, a key consideration for high-growth technology stocks.
Meanwhile, AMD is scheduled to release its next quarterly earnings report on Aug. 4. Analysts currently expect second-quarter earnings per share of $1.60, followed by $1.84 in the third quarter.
While recent volatility has highlighted concerns about valuations across the semiconductor industry, AMD’s ability to remain above the Street’s consensus target suggests investors continue to view the company as one of the leading beneficiaries of the ongoing AI infrastructure expansion.
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