Bank of America and TD Cowen raised price targets for Advanced Micro Devices (AMD) on Tuesday. Analysts cited robust demand for EPYC server processors and momentum with cloud customers. Wolfe Research separately increased its price target to $650. The firm forecasts significant earnings potential by fiscal year 2027 driven by CPU strength.
AMD shares declined despite the bullish analyst sentiment. Broader profit-taking across the semiconductor sector pressured the stock. Investors expressed growing concerns regarding the company's high valuation following a significant rally.
Cathie Wood’s Ark Invest reduced its holdings in AMD, signaling a shift from the growth-focused investor. The market reaction highlights a conflict between the company's long-term AI prospects and its current stretched valuation.