Advanced Micro Devices Stock: Analysts Project Share Price Could Reach $380

AMD US0079031078

Advanced Micro Devices (AMD) is entering the new year with significant momentum. While the average Wall Street price target sits at $277, certain research firms have published forecasts that are substantially more bullish, with Melius Research targeting $380 per share and Raymond James setting a $377 objective. This optimism follows a year where the stock gained 77% in 2025.

The foundation for this positive outlook was laid by the company's strong third-quarter 2025 results. Revenue advanced by 35.6% to $9.25 billion, while earnings per share of $1.20 modestly exceeded consensus estimates. Key growth drivers included the performance of the Datacenter segment, powered by EPYC processors, and rising demand for artificial intelligence (AI) accelerators such as the MI350 and MI450 GPUs.

Market experts anticipate this trajectory will continue. Investments in AI infrastructure are expected to climb further in 2026. Analysts at Bank of America suggest the industry is only midway through an eight-to-ten-year investment cycle for AI workloads. Similarly, Truist Financial has noted that AI chips appear undervalued relative to their growth potential.

Institutional Holders Maintain Positions Amid Insider Sales

Ownership data reveals a nuanced picture. Institutional investors maintain a dominant 71.34% stake in AMD. For instance, Generali Asset Management increased its holding by 4.4% during Q3. Conversely, CEO Dr. Lisa Su sold shares worth $26.9 million in the last quarter, contributing to total insider sales of approximately $39.9 million. Such transactions are not uncommon following substantial share price appreciation and are not necessarily an indicator of declining confidence in the company's prospects.

Valuation and Upcoming Catalyst

Even with its recent performance, AMD's valuation remains ambitious, trading at a price-to-earnings (P/E) ratio of 106. The equity is currently quoted roughly 20% below its October peak of $267. Investors are now looking ahead to the next financial update, with Q4 2025 results scheduled for February 3rd. Analyst consensus projects earnings per share of $1.10 for the quarter.