AMD Shares Close Lower After Six Consecutive Days of Gains

AMD shares closed 1.73% lower at $176.39 on Thursday, snapping six straight days of gains. The semiconductor maker gained over 13% in the last six trading days. The stock had closed 1.17% higher at $179.51 on Wednesday.

Advanced Micro Devices (AMD) shares closed 1.73% lower at $176.39 on Thursday, ending a six-day winning streak. The semiconductor maker had gained over 13% in the last six trading days, closing 1.17% higher at $179.51 on Wednesday. The stock's performance was driven by optimism surrounding its artificial intelligence (AI) and data center markets, as well as positive analyst sentiment ahead of its second-quarter earnings report scheduled for August 5.

Analysts remain divided on AMD's near-term prospects. While some see strong AI-driven growth ahead, others remain cautious due to high valuations and execution risks [2]. Goldman Sachs initiated coverage with a "Neutral" rating and a $140 price target, citing execution risks and competitive challenges [2]. Despite this, several analysts have raised their price targets ahead of the earnings report, reflecting optimism about the company's performance in the AI and data center segments.

Bank of America has raised its price target on AMD to $200 from $175, maintaining a Buy rating ahead of the earnings report. The firm expects AMD to beat expectations in both Q2 and Q3, driven by strong demand for its AI GPUs and CPUs [3]. UBS also recently raised its price target to $210 from $150 and maintained a buy rating, citing strength in both the PC and server segments [3].

AMD's stock has climbed more than 46% year-to-date, with shares up more than 14% over the past five trading days. The company's AI products, such as the Instinct MI350 accelerator, have seen increased demand, with the price of the MI350 AI accelerator set to rise to $25,000 from $15,000 [3]. This price increase indicates that AMD is seeing strong demand for its AI products.

Investors should approach AMD with a long-term mindset and avoid trying to time the market based on earnings. The company's premium valuation and slowing growth trajectory could make it a less attractive investment compared to other tech stocks. However, the strong demand for AI products and AMD's competitive pricing compared to Nvidia could provide support for the stock in the long term.

References:
[1] https://www.cnbc.com/quotes/AMD
[2] https://www.ainvest.com/news/trimming-amd-stock-q2-earnings-downgrade-2508/
[3] https://finance.yahoo.com/news/analysts-reset-amd-stock-price-003700128.html