In the midst of a broad decline in various markets, such as stocks, it’s hardly surprising to see a drop in Advanced Micro Devices (NASDAQ: AMD) shares. However, is this current downward trend an opportune moment to ‘buy on the dip’ and increase your holdings in AMD while the prices are still relatively low?
AMD stock has indeed been facing declines across multiple charts, with a recent drop of over 8% during pre-market trading. Despite this, there’s a ray of hope shining through with strong earnings and the notable purchase of 330,000 AMD shares by Cathie Wood, the CEO of Ark Invest (ARKK).
Furthermore, the earnings data indicates a rise in competitiveness, especially in artificial intelligence (AI) within data center and client segments. This growth potential could signal AMD’s upward trajectory in the future, making it a strategic move to consider increasing your holdings before potential price recovery.
Additionally, AMD is on track to become a formidable player in AI chip manufacturing. CEO Lisa Su predicts that the market value in this sector could reach an astounding $400 billion by 2027. With rising demand, AMD is poised to capture a significant portion of this market potential.
AMD stock prediction 2025: Is AMD stock a buy now?
Within the last three months, a collective of 32 Wall Street analysts have maintained a resounding ‘strong buy’ consensus on AMD stock. Only six experts recommended a ‘hold,’ with no ‘sell’ recommendations.
Their average price targets for AMD stock stand at $190.61, indicating a potential 43.36% increase from its current price. The lowest target projects a 12.82% rise to $150, while the highest target foresees an 88.03% surge to $250, as per TipRanks data on August 5.
Among these analysts, Phillip Securities’ Jonathan Woo recently reiterated a buy rating on AMD stock. Although he reduced the target price from $190 to $180, Woo argued that:
Meanwhile, Benchmark Co. analyst Cody Acree upheld a ‘buy’ rating on AMD stock with an unchanged price target of $200. Similarly, Amanda Tan from DBS concurred with a ‘buy’ rating and a $180 price target.
AMD stock price analysis
Currently, AMD’s stock price stands at $132.96. It has experienced an 8.70% decline in after-hours trading, as well as a 5.04% decrease over the past week. The monthly chart reflects a notable 30.71% drop, and year-to-date (YTD), the stock has lost 10.66%.
Despite the current price performance, AMD’s success in AI and the confidence expressed by Cathie Wood suggest a promising future. However, the stock market’s volatility underscores the importance of conducting thorough research, staying informed of AMD developments, and carefully evaluating risks before making significant investments.
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