AMD (NASDAQ:AMD) narrowed its significant losses as analysts maintained their bullish outlook on the stock amidst market fluctuations. On Thursday, January 30, the stock opened up 2% higher, recovering from a decline spurred by the launch of Chinese startup DeepSeek’s R1 model. Wells Fargo analyst, Neil Wilson, reiterated his Buy rating with a $165 price target for AMD.
Wilson emphasized the growth in AMD’s data center segment, particularly driven by strong sales of Zen4 and Zen5-based EPYC processors. DBS analyst maintained a Buy rating with a $200 price target. However, Susquehanna adjusted its price target to $165 while still recommending a Buy rating on the stock.
Bullish sentiment amid market fluctuations
Despite the general optimism, some analysts have expressed caution. An analyst cut his price target from $160 to $129, citing pressures in PCs and x86 servers.
He suggested that Nvidia’s push into ARM-based CPUs could impact AMD and Intel’s CPU market share in data centers. The consensus on AMD stock is a Moderate Buy, based on 14 Buy ratings, eight Hold ratings, and one Sell rating. The average price target of $161.55 implies a 35% upside, despite a notable 30% decline in the stock over the past year.
As AMD navigates these volatile times, investors will be closely watching how the company leverages its strengths in areas like data centers to maintain its foothold in the competitive tech landscape. This model had caused a stir in the tech sector, impacting AMD along with other AI-related companies like Nvidia and Arm Holdings.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
