Wall Street analysts update AMD stock after Q3 earnings

Wall Street is bullish on Advanced Micro Devices (NASDAQ: AMD) stock after the company beat estimates for third-quarter earnings.

Despite the beat, AMD stock reacted with weakness as investors focused on concerning gross-margin guidance. In pre-market trading on Wednesday, AMD fell 4.7% to $238. At Tuesday’s market close, the stock finished at $250, down 3.7% on the day.

AMD earnings for Q3 

For the fiscal third quarter, AMD’s adjusted earnings came in at $1.20 per share, above the $1.16 consensus, while revenue rose 36% year over year to $9.25 billion, beating forecasts of $8.74 billion. Net income jumped to $1.24 billion from $771 million a year earlier.

For the fourth quarter, AMD expects about $9.6 billion in revenue, implying 25% growth, and projected a 54.5% gross margin, in line with estimates. Notably, the pullback appears tied to AMD’s Q4 gross-margin guidance matching consensus rather than exceeding it.

CEO Lisa Su confirmed the company received U.S. licenses to ship some Instinct MI308 AI chips to China, while highlighting AMD’s deepening partnership with OpenAI, which plans to deploy up to 6 gigawatts of AMD GPUs.

Analyst update AMD stock price 

Analyst sentiment remains solid. AMD holds a ‘Moderate Buy’ rating based on 39 analysts on TipRanks, with 29 recommending a buy and 10 advising hold. 

Analysts expect the stock to reach an average price of $255.77 over the next 12 months, representing a 2.29% upside from the latest trading price of $250.05. Price targets range from $160 on the low end to $310 on the high end.

Among analysts, on November 5 Baird’s Tristan Gerra raised AMD’s price target to $300 from $240, maintaining an ‘Outperform’ rating on optimism over AI-driven growth. The firm cited an expanding AI total addressable market and the upcoming Mi450 product ramp as key catalysts, along with the potential return of MI308 shipments. 

Similarly, Stifel analyst Ruben Roy raised AMD’s price target to $280 from $240, maintaining a ‘Buy’ rating amid confidence in CPU share gains and accelerating AI revenue. Stifel highlighted strong Q3 results and guidance, and expects AI GPU revenue to rise to $8.6 billion in 2025 from $5.8 billion in 2024. The firm cited the Mi400/450 lineup, Helios rack ramp in 2025, and potential customer updates at AMD’s 2025 Analyst Day as growth drivers.

Meanwhile, UBS analyst Timothy Arcuri lifted AMD’s price target to $300 from $265, reiterating a ‘Buy’ rating on expectations of continued strength in AI GPU demand and server upgrades into 2026 and beyond. UBS projects that AI GPUs will account for more than 35% of EPS by 2026 and estimates EPS of $15–$20 later this decade. Arcuri advised investors not to fade near-term pullbacks, pointing to AWS-related catalysts and AMD’s long-term AI roadmap ahead of Analyst Day next week.

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