AMD Stock Price Forecast - AMD at $155 as Analysts Lift Price Forecast to $185–$230

Advanced Micro Devices (NASDAQ:AMD) trades at $155.40, down 0.18% in Friday’s session, after a turbulent week that saw multiple analyst downgrades tied to margin compression. Over the past 12 months the stock has gained just 3.15%, underperforming both NVIDIA (NASDAQ:NVDA) at $177.39 and the S&P 500’s 17.69% annual climb. Despite this underperformance, AMD remains up 28.7% year-to-date, signaling resilience driven by AI-related demand in data centers and PCs. Its 52-week range of $76.48 to $186.65 underscores both the volatility and the potential upside embedded in investor sentiment.

AI Data Center Growth and Product Momentum

AMD’s revenue for fiscal 2025 hit $29.6 billion, growing 27.9% YoY, far above the sector average of 11%. The standout driver has been the Data Center division, which nearly doubled to $12.6 billion, now accounting for 29% of overall sales. The Instinct MI300 series has brought in more than $5 billion in revenue, with pricing of the MI350 reportedly climbing by 70% amid strong inference demand. These gains showcase AMD’s ability to chip away at Nvidia’s dominance in the GPU segment. Beyond server GPUs, AMD is expanding AI capabilities into PC CPUs, a segment expected to gain relevance as AI workloads migrate closer to end users.

Margins Under Pressure Despite Revenue Growth

The main challenge remains margins. AMD’s gross margin sits at 51%, but its EBIT margin turned slightly negative in the most recent quarter, compared to the sector’s 34.7% average. Net margin of 19.3% trails the industry average of 29.3%, while return on equity is only 4.7%, well below peers. With a trailing P/E ratio of 93x and forward P/E at 26x, AMD trades at a premium valuation that is harder to justify without a clear turnaround in profitability. Analysts caution that AMD’s aggressive pursuit of market share could leave it exposed if growth slows before margins stabilize.

Insider Activity and Institutional Holdings

Insider ownership remains minimal at 0.50%, while institutional investors control about 69.4% of the float. For a deeper look at insider transactions and sentiment shifts, investors can track activity directly via AMD insider transactions. Short interest remains relatively low at 2.42% of float, indicating that the bearish bets on AMD are not yet significant despite valuation concerns. This suggests institutions remain largely supportive of AMD’s long-term positioning, even as they pressure management for margin improvements.

Analyst Ratings and Price Forecasts

Wall Street remains divided on NASDAQ:AMD. Out of 48 analysts, the consensus rating is Moderate Buy, with 25 Buys and 12 Holds in the past three months. The average price target is $185.77, implying 19.5% upside from current levels. Bullish forecasts extend to $210–230, led by Truist, Mizuho, and Benchmark, who argue AMD’s EPS will outpace consensus and hit $7 by 2026, supporting a re-rating higher. Bears, led by Erste Group and Seaport Global, highlight the 93x trailing P/E as unsustainable, with targets cut to $140–$150, warning that AMD’s execution risk in AI accelerators remains high.