AMD Analyst Lifts Price Target, Eyes 2 Big Catalysts: Stock Slides Premarket Despite Q3 Beat

• Baird’s Tristan Gerra maintained an ‘Outperform’ rating for the stock and raised the price target to $300 from $240.
• Retail sentiment toward AMD stock shifted to ‘neutral’ by early Wednesday, following the bearish mood observed a day prior.
• The stock has more than doubled this year.

Advanced Micro Devices, Inc. (AMD) stock received a price target boost following the chipmaker’s third-quarter results, but the stock slid over 4% in Wednesday’s early premarket session.

AMD’s stock elicited a bullish reaction from retailers on the Stocktwits platform.

AMD Analyst Looks Ahead To Next Big Catalysts

With earnings in the rearview, Baird analyst Tristan Gerra now looked ahead to AMD’s financial analyst day, scheduled for Nov. 11. The analyst expects the company to raise its artificial intelligence (AI) total addressable market (TAM) estimate, which is currently at $500 billion. Gerra also sees the ramp of MI450 as another drive for the stock.

“Potential resumption of MI308 shipments, for which there is no visibility currently, would also bring material upside,” the analyst said. MI308 is AMD’s China-specific AI chip. The company said in its earnings release that its fourth-quarter revenue outlook did not include any contribution from the chip.

Gerra said he sees meaningful upside for the stock from current levels based on his expectations of $12 in 2028 earnings per share (EPS). He clarified that the estimate does not embed the full OpenAI ramp. The chipmaker inked a multi-billion-dollar, multi-year deal with OpenAI in October to deploy 6 gigawatts (GW) of AMD GPUs.

That said, the analyst believes that the focus will be on execution.

Gerra maintained an ‘Outperform’ rating for the stock and raised the price target to $300 from $240, implying about 20% upside from the stock’s Monday close.

AMD’s Near-term Bright

Baird stated that hyperscalers are significantly increasing their general-purpose compute capacity, with larger CPU build-outs coming in the next few quarters to support increased AI. The firm noted that AMD reiterated the potential for its OpenAI engagement to generate well over $100 billion in revenue over the next few years, starting in the second half of 2026. It said Oracle will also begin to ramp up MI450 in 2026. “

Baird sees these engagements validating the “very competitive specs for MI450 discussed in industry circles since earlier this year.”

What Retail Feels About AMD Stock After Q3 Results

On Stocktwits, retail sentiment toward AMD stock shifted to ‘neutral’ by early Wednesday, following the bearish mood observed a day prior. The message volume also increased to ‘high’ levels.

The chipmaker reported third-quarter adjusted EPS and revenue ahead of expectations and issued an upbeat Q4 guidance.

AMD stock has gained 107% year-to-date.

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