{"id":134957,"date":"2025-08-10T18:16:09","date_gmt":"2025-08-10T18:16:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/134957\/"},"modified":"2025-08-10T18:16:09","modified_gmt":"2025-08-10T18:16:09","slug":"why-are-some-analysts-cautious-on-amd-stock-despite-ai-hype","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/134957\/","title":{"rendered":"Why Are Some Analysts Cautious on AMD Stock Despite AI Hype?"},"content":{"rendered":"<p>Chipmaker Advanced Micro Devices <a data-ticker=\"AMD\" href=\"https:\/\/www.tipranks.com\/stocks\/amd\" rel=\"nofollow noopener\" target=\"_blank\">(AMD)<\/a> recently reported its results for the second quarter of 2025, which failed to live up to investors\u2019 expectations. While <a href=\"https:\/\/www.tipranks.com\/news\/amd-earnings-stock-slips-despite-strong-q2-revenue-growth\" rel=\"nofollow noopener\" target=\"_blank\">AMD\u2019s Q2 revenue surpassed the Street\u2019s estimates<\/a>, its earnings were in line with expectations, with investors concerned about the decline in <a data-autolink=\"true\" href=\"https:\/\/www.tipranks.com\/compare-stocks\/artificial-intelligence\" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> (AI) business revenue. Many analysts maintained their bullish stance on AMD stock after the Q2 print. However, some analysts expressed concerns about AMD\u2019s AI\/data center revenue and higher expenses. In fact, Wall Street\u2019s average price target indicates a limited upside potential from current levels. AMD stock has rallied 43% so far this year.<\/p>\n<p>Elevate Your Investing Strategy:<\/p>\n<ul style=\"padding-top: 5px;\">\n<li> Take advantage of <a data-link=\"article_promo\" href=\"https:\/\/lp.tipranks.com\/july-2025-50off\/?llf=rss&amp;timer=on&amp;coupon=INTRO50P\" rel=\"nofollow noopener\" target=\"_blank\"> TipRanks Premium at 50% off! <\/a> Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.\n<\/li>\n<\/ul>\n<p>Heading into Q2 results, the hype around AMD\u2019s <a data-autolink=\"true\" href=\"https:\/\/www.tipranks.com\/compare-stocks\/artificial-intelligence\" rel=\"nofollow noopener\" target=\"_blank\">AI<\/a> business was very high, especially after the Advancing AI event. AMD highlighted its new GPUs (graphics processing units), which revived investors\u2019 hopes about the company\u2019s prospects after persistent concerns about it lagging behind rival Nvidia <a data-ticker=\"NVDA\" href=\"https:\/\/www.tipranks.com\/stocks\/nvda\" rel=\"nofollow noopener\" target=\"_blank\">(NVDA)<\/a> in the AI race. However, AMD\u2019s Q2 results, especially the data center business growth and AI business revenue decline, disappointed investors. AMD cited U.S. export restrictions that eliminated MI308 sales to China and the transition to its next-generation chips as the reasons for the decline in Q2 AI business revenue.<\/p>\n<p><strong>AMD\u2019s Q2 Results Draw Some Concerns<\/strong><\/p>\n<p>Despite the mixed Q2 results, AMD bulls are confident about the company\u2019s potential to grow in both CPU and GPU markets and capture AI opportunities. However, some analysts remain cautious due to the ongoing challenges.<\/p>\n<p>For instance, Goldman Sachs analyst <a href=\"https:\/\/www.tipranks.com\/experts\/analysts\/james-schneider\" rel=\"nofollow noopener\" target=\"_blank\">James Schneider<\/a> raised his price target for AMD stock to $150 from $140, but reiterated a Hold rating. The 4-star analyst noted that AMD is seeing strong traction with its Data Center GPU solutions. In particular, Schneider expects the MI355 offering to drive strong double-digit quarter-over-quarter growth in the Data Center segment in the third quarter and continued sequential growth in Q4 2025.<\/p>\n<p>While Schneider remains constructive on AMD\u2019s ability to drive significant market share gains in the PC and enterprise server markets in the near term, he retains a neutral stance on the stock as he is \u201cmore guarded\u201d on the company\u2019s ability to drive scale in Data Center GPUs over time. Also, he thinks that AMD\u2019s earnings power is likely to be hampered by the significant operating expenses ramp needed to support its AI software and systems efforts.<\/p>\n<p>Meanwhile, Morgan Stanley analyst <a href=\"https:\/\/www.tipranks.com\/experts\/analysts\/joseph-moore\" rel=\"nofollow noopener\" target=\"_blank\">Joseph Moore<\/a> lowered his price target for AMD stock to $168 from $185 and maintained a Hold rating. The 5-star analyst stated that the quarter was solid across segments and revenue continues to be \u201cquite strong, but it\u2019s not clear that will be enough to keep the bulls in charge of the narrative.\u201d He contends that AMD\u2019s commentary on the timing of resumption of China shipments was \u201cmore vague than expected.\u201d Overall, Moore slashed his price target for AMD stock to reflect lower conviction in China demand and a lack of\u00a0AI-related upside.<\/p>\n<p><strong>Is AMD Stock a Buy or Sell Now?<\/strong><\/p>\n<p>Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 25 Buys and 12 Holds. The average <a href=\"https:\/\/www.tipranks.com\/stocks\/amd\/forecast\" rel=\"nofollow noopener\" target=\"_blank\">AMD stock price target<\/a> of $180.78 indicates 4.6% upside potential from current levels.<\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/stocks\/amd\/forecast?ref=blog\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" width=\"752\" height=\"562\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/08\/image-562.png\" alt=\"\" class=\"wp-image-2302940\"  \/><\/a><\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/stocks\/amd\/forecast\" rel=\"nofollow noopener\" target=\"_blank\"><strong>See more AMD analyst ratings<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/glossary\/d\/disclaimer-disclosure\" style=\"margin-right: 32px;\" rel=\"nofollow noopener\" target=\"_blank\">Disclaimer &amp; Disclosure<\/a><a href=\"https:\/\/www.tipranks.com\/glossary\/c\/contact-editor\" rel=\"nofollow noopener\" target=\"_blank\">Report an Issue<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Chipmaker Advanced Micro Devices (AMD) recently reported its results for the second quarter of 2025, which failed to&hellip;\n","protected":false},"author":3,"featured_media":134958,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64,67,132,68],"class_list":{"0":"post-134957","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-united-states","10":"tag-unitedstates","11":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115005842021162124","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/134957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=134957"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/134957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/134958"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=134957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=134957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=134957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}