AMD Stock Hit $1 Trillion Then Pulled Back. Here’s What Analysts Say Now

TLDR

• AMD stock fell about 1.5% in Tuesday pre-market after jumping nearly 10% on Monday
• Monday’s rally pushed AMD’s market cap above $1 trillion for the first time
• Meta’s Muse AI app hitting the top of the U.S. App Store drove renewed AI demand optimism
• Wall Street holds a Strong Buy consensus on AMD with an average price target of $644.62
• Tuesday’s dip looks like profit-taking rather than a change in the AI demand outlook

---

AMD stock was trading around $608 in Tuesday pre-market, down roughly 1.2%, after closing up nearly 10% on Monday. That single-session gain briefly pushed AMD’s market cap above $1 trillion for the first time.

Advanced Micro Devices, Inc., AMD

The pullback is not tied to any bad news. Nvidia and Intel are also dipping slightly in pre-market. Investors are simply locking in gains after a sharp move.

Monday’s surge was largely triggered by Meta Platforms. Meta’s Muse personal AI assistant ranked as the most-downloaded free iPhone app in the U.S. for three straight days, according to Sensor Tower. That grabbed the market’s attention fast.

The excitement centres on what Muse’s popularity could mean for chip demand. Agentic AI workloads rely heavily on CPUs, not just GPUs. AMD is one of the biggest suppliers of server CPUs, which puts it directly in the path of that potential demand wave.

AMD itself has projected the server CPU market will grow about 50% by 2030, reaching roughly $220 billion. Muse’s early traction gives investors a real-world signal that agentic AI adoption may be picking up.

Analysts Remain Confident

Several analysts have weighed in recently and none of them are backing away from bullish targets.

Bernstein’s Stacy Rasgon reiterated a Buy rating and a $650 price target on Tuesday. That implies about 5.6% upside from current levels.

Piper Sandler’s David O’Connor also held his Buy rating with a $600 target, pointing to continued demand for AMD’s CPUs and GPUs and noting that demand is running ahead of supply across much of AMD’s product lineup.

Stifel’s Ruben Roy kept his Buy rating and a $635 target, calling out AMD’s server CPU business as a key driver of medium-term growth. Roy has previously highlighted strong order backlogs and long-term capacity commitments across the AI infrastructure sector.

Technical Picture

Technically, AMD is in a strong uptrend but stretched. The stock sits 22% above its 20-day moving average and 70% above its 200-day moving average.

Its Relative Strength Index came in at 72.63, which puts it in overbought territory above the 70 threshold. That can signal short-term consolidation is possible.

The broader moving average structure is still bullish. The 20-day sits above the 50-day, which sits above the 200-day. Key support is near $498, around the 20-day moving average.

AMD trades at roughly 157 times earnings, reflecting high growth expectations baked into the price.

Overall, Wall Street has a Strong Buy consensus on AMD based on 29 Buy ratings and six Hold ratings assigned over the last three months. The average price target of $644.62 points to about 5% upside from current levels.