AMD Stock Gets a $600 Price Target — Here’s Why Wall Street Is Bullish

TLDR

• Krane Funds Advisors raised its AMD stake by 72.7% in Q4, bringing its holdings to 11,306 shares worth ~$2.42 million.
• AMD reported Q1 earnings of $1.37 per share, beating estimates by $0.08, with revenue up 37.8% year over year to $10.25 billion.
• Goldman Sachs upgraded AMD from Neutral to Buy, lifting its price target from $240 to $450; TD Cowen raised its target to $600.
• AMD opened at $466.38, well above its 50-day moving average of $358.36, with a consensus average target of $419.86.
• Insiders sold $119.5 million worth of stock over the past 90 days, while AMD also faces pressure after Broadcom’s weaker AI outlook rattled chip stocks.

AMD has been one of the louder stories in the semiconductor space lately. Strong earnings, a wave of analyst upgrades, and growing institutional interest have pushed the stock well above its recent averages — though not without some turbulence along the way.

Advanced Micro Devices, Inc., AMD

AMD opened at $466.38 on Monday, up sharply from its 50-day moving average of $358.36 and far above its 200-day moving average of $265.16. The stock has a 52-week range of $115.06 to $546.44, reflecting just how wild the ride has been.

The catalyst for much of the recent bullishness was AMD’s Q1 earnings report. The company posted $1.37 earnings per share, beating the consensus estimate of $1.29. Revenue came in at $10.25 billion, ahead of the $9.90 billion analysts expected, and up 37.8% from the same quarter a year ago.

That kind of beat tends to get Wall Street’s attention.

Analyst Upgrades Roll In

Goldman Sachs moved AMD from Neutral to Buy on May 6th, raising its price target from $240 to $450. Sanford C. Bernstein also upgraded the stock, going from Market Perform to Outperform and lifting its target from $265 to $525.

TD Cowen went further, raising its target all the way to $600 on June 1st while maintaining a Buy rating. JPMorgan kept its Neutral stance but still raised its target from $270 to $385. Barclays has a price target of $665 on the stock, pointing to rising CPU demand tied to expanding AI workloads.

The current analyst consensus sits at Moderate Buy, with an average price target of $419.86. That’s actually below where the stock is trading right now, which tells you the recent move has been fast.

Krane Funds Advisors was among the institutional buyers in Q4, boosting its AMD position by 72.7% to 11,306 shares valued at around $2.42 million. Vanguard remains the largest institutional holder with over 158 million shares worth roughly $33.9 billion. Norges Bank added a new position worth approximately $4.9 billion in Q4.

Overall, institutional investors and hedge funds own 71.34% of AMD’s outstanding stock.

Insider Sales and Headwinds

Not everyone is leaning in. Insiders sold $119.5 million worth of AMD stock in the past 90 days. EVP Paul Darren Grasby sold 24,376 shares at $444.39 each on May 8th. EVP Mark D. Papermaster sold 31,320 shares at $350.00 on April 24th, under a pre-arranged 10b5-1 trading plan.

On the macro side, AMD took a hit after Broadcom’s earnings disappointed investors who had priced in stronger AI guidance. That dragged chip stocks broadly lower and reignited valuation concerns around AMD given its price-to-earnings ratio of 152.91.

TSMC has also flagged that AI chip supply will remain tight for years, which supports demand but also points to ongoing constraints across the sector.

Sell-side analysts project AMD will post $6.20 earnings per share for the full year.

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