TLDR
- AMD gains 35% in 2025 with Moderate Buy rating and 13.60% upside potential from analysts
- Palantir surges 107% but receives Hold rating with potential 1.43% downside risk
- AMD upgraded to $213 price target by Truist Securities, citing AI processor demand
- Palantir beats Q2 expectations with first $1 billion quarterly revenue milestone
- Wall Street prefers AMD’s fundamentals over Palantir’s high valuations
Two artificial intelligence stocks are drawing investor attention as the AI revolution accelerates. Advanced Micro Devices and Palantir Technologies both posted impressive 2025 gains, but Wall Street analysts favor one over the other.
AMD has climbed 35% this year as the chipmaker captures more AI processor market share. The company recently formed a partnership with IBM to develop quantum computing systems for climate research and pharmaceutical applications.
Palantir has delivered stronger returns with a 107% rally in 2025. The data analytics company benefits from growing demand for its AI-powered platforms across government and commercial sectors.
Earnings Results Paint Different Pictures
AMD reported mixed second quarter results with 32% revenue growth year-over-year. The semiconductor company provided optimistic third quarter guidance that satisfied investors. Earnings per share matched analyst estimates without beating expectations.
Palantir exceeded Wall Street forecasts in its latest quarterly report. Revenue jumped 48% year-over-year, crossing $1 billion in quarterly sales for the first time. The company raised full-year 2025 revenue guidance to $4.142-4.150 billion.
Both firms demonstrated strong momentum in their respective markets. AMD continues gaining server processor market share while Palantir expands beyond traditional government contracts into commercial applications.
Truist Securities analyst William Stein upgraded AMD to Buy from Hold with a $213 price target. He cited increasing data center demand and AMD’s improved competitive position in AI chip markets.
Market Position Drives Investment Thesis
AMD now controls over 20% of the server CPU market, up from less than 1% previously. This growth occurred while Intel faced execution challenges in processor development.
Stein increased his 2027 earnings projection to $7.89 per share for AMD. The upcoming MI355 chip launch represents a key catalyst for the company’s AI business expansion.
Palantir expects U.S. commercial revenue to grow 85% year-over-year in fiscal 2025. This forecast surpasses the company’s earlier projection of 68% commercial segment growth.
Wedbush analyst Dan Ives maintained his Outperform rating on Palantir with a $160 target. He called recent quarterly results exceptional and named Palantir a top 2025 technology pick.
Wall Street Consensus Favors Chipmaker
AMD receives a Moderate Buy consensus from analysts with 25 Buy and 10 Hold recommendations. The average $184.74 price target implies 13.60% upside from current levels.
Palantir holds a Hold consensus rating based on five Buys, 13 Holds, and two Sell ratings. The average $154.47 price target suggests 1.43% potential downside.
The rating difference reflects analyst concerns about AI bubble risks and Palantir’s elevated valuation metrics. Trade tensions and chip sector competition remain key risks for AMD.
Both companies continue expanding AI capabilities as enterprise demand accelerates. AMD focuses on processing hardware while Palantir provides data analytics software solutions for complex datasets.
