AMD Stock: What Analysts Expect After Hitting New Highs

TLDR

• AMD stock rose more than 2% Friday, hitting a fresh 52-week high near $642.
• The chipmaker recently crossed $1 trillion in market value, joining Nvidia, Broadcom and Micron.
• OptionsPlay’s Tony Zhang sees AMD reaching $750 by November after its breakout above a months-long trading range.
• AMD’s average analyst price target sits at $604, with a P/E ratio above 160.
• Insiders sold over $105 million in stock in the past 90 days, while institutions still hold 71% of shares.

---

AMD stock climbed more than 2% in Friday’s premarket trading, part of a broader rally in tech stocks. Nasdaq futures rose 0.55% and S&P 500 futures gained 0.33% ahead of the open.

Advanced Micro Devices, Inc., AMD

The chipmaker traded near $642, a new 52-week high. That’s a jump from Thursday’s close of $629.26.

AMD has been on a tear lately. It recently crossed the $1 trillion market cap mark, becoming the fourth U.S. chipmaker to do so after Nvidia, Broadcom and Micron.

The stock had spent months trading between $450 and $550. It broke out of that range after reports surfaced of roughly 10% price increases across AI chips, graphics cards and chipsets.

Analysts See More Room to Run

OptionsPlay’s Tony Zhang told CNBC this week that AMD could keep climbing. He pointed to strong demand for AMD’s CPU and GPU server products as the driver behind the recent price hikes.

Zhang set a possible target of $750 by November. Given how far the stock has already run, he suggested using options like a call spread to manage downside risk rather than buying shares outright.

Wall Street’s average price target for AMD currently sits at $604, below where the stock is trading now. Piper Sandler started coverage with a $600 target on September 10. Raymond James raised its target to $641 in late August, and BMO Capital came in with a $550 forecast in late August too.

The stock carries a “Moderate Buy” consensus overall, with three Strong Buy ratings, 33 Buy ratings, ten Hold ratings and one Sell rating.

Technical Picture Shows Overbought Signals

AMD trades well above its short and long-term moving averages. It sits about 23% above its 20-day average and 77% above its 200-day average.

That’s a bullish trend structure, but the relative strength index reads 72.64. Anything above 70 typically signals overbought territory, which can bring higher volatility.

Key resistance sits near $643, while the old 52-week high of $630.80 now serves as support.

On the fundamentals, AMD posted second-quarter revenue of $11.54 billion, up 50% year over year, and EPS of $1.66, beating estimates. The company’s P/E ratio stands at roughly 161, well above the broader market.

Some of the bullish case ties back to AI. CEO Lisa Su has argued that “agentic AI” could spark a new wave of CPU demand, and investors increasingly view AMD as an alternative to Nvidia in data center accelerators.

Not everyone is convinced the rally has legs. Rising Treasury yields and AMD’s stretched valuation have some analysts warning of profit-taking risk.

There’s also been insider selling to note. EVP Forrest Norrod sold 17,261 shares on September 15 at an average price of $503.05. EVP Mark Papermaster sold 28,811 shares back on August 20 at $471.87 each.

In total, insiders have sold $105.5 million worth of stock over the past 90 days. Institutional investors still own 71.34% of the company, with BlackRock holding the largest stake at over 150 million shares.