Shares of Advanced Micro Devices (NASDAQ:AMD) have been battered over the past month, losing -16.34% and compounding their year-to-date and one-year losses to -27.47% and 43.20%, respectively. Since AMD’s five-year high on March 8, 2024, the stock has lost more than 57% of its value.

In mid-April, both UBS and Wells Fargo lowered their price targets for AMD. UBS lowered the firm’s price target on AMD (AMD) to $155 from $175 but maintained its “Buy” rating. Meanwhile, Wells Fargo analyst Aaron Rakers lowered the firm’s price target on AMD to $120 from $140, but kept its “Overweight” rating ahead of Q1 results. The company next announces earnings on May 6 after market close.

There have been some positive developments for shareholders. In March, the company announced its gaming chips have been selling well in Japan, with market share reaching 45% and maintaining a target goal of achieving 70% market share. According to PC Gamer, “The AMD Ryzen 7 7800X3D is simply the best gaming GPU around right now. It’s certainly the best gaming chip that AMD has ever made, but it’s also capable of outperforming Intel’s top CPU when it comes to gaming frame rates and is doing so for a lot less cash. It’s also a lot less power-thirsty, too.” Rave reviews such as this would have been considered unthinkable over a decade ago.

After 50 years of playing second best to rival Intel (NASDAQ:INTC), Advanced Micro Devices surpassed it, thanks to CEO Dr. Linda Su, who took the reins in 2014 with AMD able to unveil the Ryzen in 2017, which became a game changer. Based on a principle of multiple microscopic CPUs working in tandem, AMD’s Ryzen CPU outperformed Intel’s CPUs in speed and efficiency, and most importantly, cost only half as much. Ryzen and its later updates subsequently added tens of billions to AMD’s revenues, and in 2022, AMD surpassed Intel in market cap, although not in chip market share.

To know where the stock may be heading, 24/7 Wall Street dove into the company’s past performance and its forward projections to establish price targets from now through 2030.

Key Points In This Article

• The acquisition of ZT Systems, a cloud architecture solution provider, is a key building block of Lisa Su’s AI development strategy objective, which is to provide AI in end-to-end computing.
• AMD’s MI300 GPU and future models will continue to compete with Nvidia for the AI graphics market.
• AMD’s chip architecture for Ryzen and other products will expand for installation applications beyond gaming, such as automobiles, IoT and others.
• If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.

Advanced Micro Devices (AMD) Headwinds

Despite AMD’s phenomenal turnaround over the past decade, not everything has been smooth sailing and concern-free.

• Unlike Intel, AMD does not own manufacturing facilities in the U.S. Dr. Su’s reputation and ties to Taiwan have created a strong relationship with manufacturing facilities owned by Taiwan Semiconductor Manufacturing Co. (NYSE:TSM). While the relationship between AMD and TSMC remains robust, geopolitical tensions between Taiwan and China, whose CCP leadership continues to advocate for “reunification” with Taiwan, even if by military invasion, continues to be a supply chain risk factor. 
• While AMD’s MI300 GPU is a viable competitor to Nvidia’s H100, industry publication Tom’s Hardware estimates that AMD’s new chips sell for just 25% of the price of Nvidia’s  H100, despite their similar performance. This means less room for growth and lower margins. Additionally, NVIDIA (NASDAQ:NVDA) isn’t standing still. The company’s Blackwell platform is designed to train generative AI models at a fraction of the cost of its predecessor. NVIDIA’s faster development cycle means that AMD may be stuck playing a game of catchup — putting further pressure on its pricing power, growth and margins.
• U.S. technology export restrictions require AMD, NVIDIA and other U.S. chip makers to design lower-performance versions of their top products for export to China and the Middle East. Prior iterations from Q1 2024 were rejected by the U.S. Commerce Department. as still being too powerful, and export licenses were withheld. The counterintuitive need to create a better device to market while simultaneously designing lower capabilities is proving to be a more delicate and difficult task than anticipated.

Regardless, investors are much more concerned with stock’s future performance over the next one, five and 10 years. While most Wall Street analysts will calculate 12-month forward projections, it’s clear that nobody has a consistent crystal ball, and plenty of unforeseen circumstances can render even near-term projections irrelevant. 24/7 Wall Street aims to present some further-looking insights based on AMD’s own numbers, along with business and market development information that may be of help to our readers’ own research.

AMD Stock’s Last 10 Years

After stints at IBM and Texas Instruments, Dr. Lisa Su became COO of AMD, assuming the CEO position in 2014. Soon afterwards, she started her overhaul of the company by splitting it into 2 divisions: 

• Computing and Graphics, which includes desktop and notebook processors and chipsets, discrete GPUs, and professional graphics; 
• Enterprise, Embedded, and Semi-Custom, which includes server and embedded processors, dense servers, semi-custom SoC products (including solutions for gaming consoles), engineering services, and royalties.

Dr. Su oversaw the release of the Radeon 300 and Fury series, the last of the Bulldozer derivatives, and then the RX 400 series of GPUs in 2016.

Based on AMD’s Zen architecture, both Epyc for servers and workstations Ryzen for laptops and desktops debuted in 2017. They innovatively took multiple micro CPUs to work as a team for superior computing power and speed. Ryzen, in particular, took the computing world and Intel by surprise, as it catapulted AMD to previously uncharted levels. 2020 saw AMD announce the acquisition of Xilinx for its field programmable gate arrays (FPGA). AMD would discontinue Xilinx production of its complex programmable logic devices (CPLD) in early 2024. 

Pensando Systems was added to AMD’s portfolio in 2022, with Mipsology to follow in 2023. On the AI front, 2023 saw AMD acquire Nod.ai, followed by Silo.AI, Europe’s largest private AI Lab, in 2024.

Fiscal Year (Dec)	Price	Revenues	Net Income
2015	$2.87	$3.991 B	-($660 M)
2016	$11.34	$4.319 B	-($498 M)
2017	$10.28	$5.253 B	-($33 M)
2018	$18.46	$6.475 B	$337 M
2019	$45.86	$6.731 B	$341 M
2020	$91.71	$9.763 B	$2.490 B
2021	$143.90	$16.434 B	$3.162 B
2022	$64.77	$23.601 B	$1.320 B
2023	$147.41	$22.680 B	$854 M
2024	$121.65	$25.785 B	$1.64 B

Key Drivers for AMD’s Stock in the Future

1. AMD’s MI300 GPU: These GPUs and similar products are addressing AI workloads for cloud computing, which is stirring up interest. Microsoft (NASDAQ:MSFT) and Oracle (NASDAQ:ORCL) are already using the MI300. As a result, AMD is now on the radar alongside other AI related stocks.

2. The ZT Systems Acquisition: AMD acquired ZT  Systems for $4.9 billion, which is now serving as a key building block of Lisa Su’s AI development strategy. By integrating ZT’s expertise in data center infrastructure, AMD will be able to offer complete AI solutions, encompassing hardware, software, and system-level integration. Therefore, AMD will soon provide a one-stop, comprehensive and integrated offering to clients seeking robust AI solutions.

3. Data Center Growth: Already an enormous component of AMD’s revenue, the company’s data center segment generated $12.6 billion in revenue in 2024, representing a 94% increase compared to 2023. In Q3 2024 alone, this slice of the company’s revenue grew by a record 122%. AMD’s data center business is increasingly focused on facilitating demand for AI growth. 

Stock Price Prediction for 2025

According to Wall Street analysts AMD, the consensus 12-month price target is $145.10, which represents upside potential of 65.82% from today’s price. Of the 34 analysts covering AMD, 22 assign it a “Buy” rating, 12 assign it a “Hold” rating and zero assign it a “Sell” rating. Overall, the stock receives a grade of Moderate Buy. 

24/7 Wall Street’s year-end projection for AMD is $205.20, which represents 65.82% upside potential from today’s price. We believe Dr. Su’s goal of end-to-end AI utility is already underway, with AMD competing with Nvidia in a similar fashion and strategy to how it challenged Intel: with comparable or superior speed and performance for lower prices. 

AMD Stock Forecast Through 2030

At present, no smartphone utilizes any AMD CPUs. Nevertheless, AMD has already announced the availability of Ryzen chips for mobile devices. By 2030, the growth of AI-powered mobile gaming should reach the point where the demand for Ryzen performance in smartphones by game-oriented users should see Ryzen-powered smartphones. This would be a huge boon for AMD, as the smartphone market is a major one that has long eluded it. 

Year	EPS	Price	% Change From Current Price
2025	$6.84	$205.20	65.82%
2026	$7.90	$237.12	170.99%
2027	$9.81	$294.40	236.45%
2028	$10.20	$306.00	249.71%
2029	$11.20	$336.00	284%
2030	$13.21	$396.20	352.80%

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