AMD's $5.14B Trade Ranks 12th as Analysts Reaffirm Buy Amid AI and Quantum Push

On September 4, 2025, Advanced Micro Devices (AMD) traded with a volume of $5.14 billion, ranking 12th in market activity. The stock closed down 0.21%, reflecting mixed investor sentiment despite recent strategic developments.

Truist Securities reaffirmed a Buy rating for AMD, maintaining a $213 price target. Analysts highlighted a pivotal shift in customer perception, with datacenter and AI clients increasingly viewing AMD as a “real potential partner” rather than a “price check.” The firm emphasized the MI355 GPU as a transformative product, drawing parallels to AMD’s success in server CPUs. Management’s feedback on improved software performance, including a 3.5x inference gain in ROCm 7, further supports this optimism.

A strategic collaboration with IBM to develop quantum-centric supercomputing architectures underscores AMD’s expanding influence in high-performance computing. This partnership aims to integrate AMD’s hardware with IBM’s quantum systems, addressing complex algorithm challenges. Meanwhile, Truist noted that geopolitical constraints may limit AMD’s GPU sales to China, though demand for MI355 and AI-adjacent x86 servers remains robust.

Recent analyst activity included Mizuho raising AMD’s price target to $205 and Seaport Global Securities downgrading its rating to Neutral, citing concerns over AI accelerator adoption. Despite these divergent views, AMD’s 2027 EPS estimate of $7.89 and long-term growth trajectory remain intact. Institutional ownership trends show reduced fund exposure to AMD, contrasting with Qualcomm’s stronger institutional support.

Backtesting results indicate AMD’s six-month performance surged 61%, trading above its fair value. While Truist anticipates margin expansion for MI355, near-term gross profit predictability remains uncertain. The stock’s forward P/E of 41x reflects premium valuation for AI-driven growth, contrasting with Qualcomm’s more conservative metrics.