Why AMD Stock Is Falling Premarket Today Despite Fresh Price Target Hikes

• UBS analyst Timothy Arcuri raised the price target on AMD to $700 from $670 and maintained a ‘Buy’ rating on the shares, as per TheFly. 
• This implies an upside of about 32% from the stock’s last close. 
• Rosenblatt also raised the price target on AMD to $665 from $490 and kept a ‘Buy’ rating on the shares. 

Advanced Micro Devices Inc. (AMD) stock declined more than 2.5% in premarket trading as Taiwan Semiconductor Manufacturing Corp.’s (TSM) sharp increase in capital expenditure triggered concerns about unsustainable spending in the AI industry.

Surging AI demand has prompted TSM to ramp up capacity, and the company raised its 2026 capex spending forecast to $60 billion to $64 billion in its latest earnings update, up from its previous $52 billion to $56 billion range.

Meanwhile, Wall Street analysts are growing increasingly optimistic about AMD’s growth potential ahead of its AI Day event scheduled for July 22–23 in San Francisco. 

AMD Stock: Wall Street Stance

UBS analyst Timothy Arcuri raised the price target on AMD to $700 from $670 and maintained a ‘Buy’ rating on the shares, as per TheFly. This implies an upside of about 32% from the stock’s last close. 

The analyst said that AMD is likely to highlight durable CPU and GPU roadmaps, potential AI partnerships, and expanded data center opportunities at its upcoming AI Day event. Meanwhile, its supply chain checks support a bullish outlook, the analyst reportedly said in a research note. 

Rosenblatt also raised the price target on AMD to $665 from $490 and kept a ‘Buy’ rating on the shares. The firm also named the company as its top semiconductor top-long idea ahead of its earnings expected in early August. The firm said it sees the server dominating the high-end market after Intel's Diamond Rapids server was delayed.

However, according to Koyfin, the 12-month average price target for AMD stock is $536.36, implying an upside of just 1% from its last close. 

Of the 51 analysts covering the stock, 41 have a ‘Buy’ or higher rating, while the rest have a ‘Hold’ rating. 

AMD Stock: Retail Stance

On Stocktwits, retail sentiment around AMD stock was ‘bearish’ amid ‘normal’ message volumes. 

One user noted TSM’s massive capex hike, adding that it would be “a serious headwind” for companies such as AMD, Nvidia Corp. (NVDA), and Intel Corp. (INTC). 

https://stocktwits.com/HooterTrades/message/659191326

Another user said the share price drop among chipmakers, including AMD, could be explained in two words: “Capital expenditures.”

https://stocktwits.com/HooterTrades/message/659191385

AMD stock is up more than 136% this year. 

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