Analysts Boost AMD Price Targets Ahead of Earnings Amid Stock Dip

AMD US0079031078

Ahead of its fourth-quarter earnings report, Advanced Micro Devices (AMD) finds itself at a crossroads. While prominent financial institutions have significantly raised their price targets for the semiconductor stock, its shares faced selling pressure at the start of the week. This divergence highlights a key question for investors: has the market already priced in the company's promising artificial intelligence (AI) prospects?

Beyond daily price fluctuations, the positioning of major investors remains a critical factor. Recent regulatory filings reveal that National Wealth Management Group LLC more than doubled its stake in AMD during the third quarter. This move underscores a broader trend of institutional conviction, with such investors now holding approximately 71.34% of the company's shares, indicating strong commitment from large asset managers and funds.

Revised Forecasts Signal Strong Optimism

This institutional confidence is mirrored by upbeat analyst commentary. On Monday, two major firms updated their assessments, expressing clear bullishness driven primarily by AMD's AI segment.

• A UBS research note from analyst Timothy Arcuri reaffirmed a "Buy" rating and lifted the price target from $300 to $330. This new target implies a potential upside of over 30% from recent trading levels.
• Piper Sandler analyst Harsh Kumar maintained an "Overweight" rating while increasing his target from $280 to $300. Kumar anticipates positive surprises in the upcoming report, projecting fourth-quarter 2025 revenue to exceed current consensus by roughly $200 million and earnings per share to beat estimates by at least 2 cents.

Piper Sandler also emphasized a longer-term outlook, projecting that AMD's AI accelerators could generate over $10 billion in revenue by 2026—a central pillar supporting the upgraded targets.

Shares Retreat Despite Bullish Calls

Contrasting the positive analyst sentiment, AMD's stock traded lower on Monday. It declined between 2.4% and 3.3% during the session, hovering around $251 and approaching a technical support zone between $251 and $260.

This pullback is contextualized by the stock's impressive prior performance. AMD shares have rallied approximately 18% since the start of the year and have surged about 125% over the past twelve months. Following such a substantial advance, a period of consolidation or profit-taking ahead of a major earnings announcement is not uncommon.

All Eyes on the Forthcoming Quarterly Report

Market focus is now squarely on the upcoming financial release. AMD is scheduled to report results for the fourth quarter of 2025 after the market closes on February 3.

Current consensus estimates among analysts are:
* Adjusted Earnings Per Share: $1.32
* Revenue: $9.65 billion

The immediate narrative for AMD pits a short-term technical correction against a robust fundamental picture, particularly in AI hardware. The upcoming earnings report will be pivotal in determining whether the company can meet the market's high expectations for revenue and AI-driven growth.

Key Data Summary

• Monday's Trading: Shares declined 2–3% despite raised price targets.
• Updated Price Targets: $330 (UBS), $300 (Piper Sandler).
• Next Catalyst: Q4 2025 earnings release on February 3, 2026.
• Consensus Rating: "Strong Buy" (based on 26 Buy and 8 Hold recommendations).
• Year-to-Date Performance: The stock has gained 18.33% since the beginning of the year.