AMD Stock Tanks After Earnings, But The Dip Isn’t Changing Wall Street’s Or Retail Investors’ Bullish View — Here’s Why

• Several brokerages, including Jefferies, Wells Fargo, Truist, JPMorgan and Morgan Stanley, raised their price targets.
• Analysts said AMD’s AI GPU roadmap and expanding data center business remain the key drivers of the long-term investment case.
• Retail sentiment remains firmly bullish, with AMD receiving 59% of votes in a Stocktwits poll asking which trending stock investors favor over the next five years.

Shares of Advanced Micro Devices Inc. (AMD) tumbled on Wednesday as its revenue outlook failed to impress investors, despite the company reporting better-than-expected second-quarter earnings and revenue. While the stock was under pressure, Wall Street analysts largely maintained their bullish outlook, raising price targets, and retail investors on Stocktwits continued to back the company's long-term AI growth story.

At the time of writing on Wednesday midday, AMD shares were down 6%.

AMD reported second-quarter revenue of $11.5 billion, up 50% from a year earlier, while adjusted earnings came in at $1.66 per share. Both topped analysts’ expectations of $11.3 billion in revenue and $1.62 per share in earnings.

Wall Street Keeps Faith In AMD’s AI Growth Story

Despite the post-earnings selloff, several brokerages raised their price targets on AMD, citing confidence in the company's AI GPU and data center businesses.

Jefferies: Raised its price target to $650 from $640, implying about 25% upside from Tuesday’s close, while reiterating a Buy rating. The brokerage said AMD’s results and guidance missed “lofty expectations,” but expects AI GPU growth to accelerate in the fourth quarter, according to TheFly.

JPMorgan: Hiked its price target to $550 from $385, about 6% upside from the last close, while maintaining a Neutral rating. The brokerage said AMD delivered another “beat and raise” quarter, though September-quarter guidance came in slightly below buy-side expectations. It expects data center growth to outpace overall AI infrastructure spending in 2027.

Wells Fargo: Raised its price target to $700 from $615, implying nearly 35% upside, while maintaining an Overweight rating. It cited stronger long-term growth expectations, with AMD now forecasting revenue growth above 35% CAGR between 2025 and 2030 and earnings exceeding its previous target by 2029-2030.

Morgan Stanley: Increased its price target to $465 from $410 while maintaining an Equal Weight rating. The analyst said the quarterly results were largely expected, but called management's outlook for 2027 data center revenue to more than double “certainly positive.” The new target implies about 10% downside from Tuesday's close.

Truist: Lifted its price target to $594 from $478, implying nearly 15% upside from the last close, while reaffirming a Buy rating. The brokerage pointed to improving product performance, accelerating demand and stronger execution, saying those factors support a more credible 2027 data center outlook.

AMD Stock: Stocktwits Retail Stays Bullish

On Stocktwits, retail sentiment on AMD remained ‘extremely bullish,’ unchanged over the past 24 hours, while message volume was ‘extremely high.’

In a Stocktwits poll asking retail investors which of AMD, Shopify, Uber or Eli Lilly they were most bullish on over the next five years, AMD led with 65% of the votes at the time of writing.

Many retail traders also echoed Wall Street’s optimism, focusing on AMD’s long-term AI and data center opportunity, with some even projecting the stock could reach as high as $800.

One trader said AMD’s 51% year-over-year revenue growth, record data center revenue, earnings and revenue beat, higher guidance, and multiple analyst price targets between $620 and $700 supported the long-term bullish case, despite the possibility of near-term pullbacks. “I’ll stick with the numbers until they tell a different story,” added the trader.

Another retail investor said those with available cash should use the current weakness to position for “the next run to 800+.”

AMD stock has gained nearly 130% year to date. Over the same period, the SPDR S&P 500 ETF Trust (SPY) has risen 12%, while the Invesco QQQ Trust (QQQ) is up about 16%. The VanEck Semiconductor ETF (SMH) has gained 58%, while the iShares Semiconductor ETF (SOXX) has advanced 76%.

Also See: Lisa Su Says Customers Want 'A Lot More Compute' — Sees 'Tremendous Momentum' In AMD’s Data Center Business

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