AMD Shares Plummet 10%, But Analysts See 155% Upside Potential

Shares of AMD (NASDAQ:AMD) plummeted by 10% in July before experiencing a significant rally following Microsoft's (NASDAQ:MSFT) report on Azure growth and capital expenditure. The stock price dropped from near-record levels to $485.39, but analysts remain bullish about the company's prospects.

Baird's Tristan Gerra doubled his AMD price target from $625 to $1,250, reiterating an Outperform rating. This implies approximately 155% upside potential, significantly exceeding the consensus estimate of $575.49.

Gerra's thesis is built on two pillars: first, he models $147 billion in AI GPU revenue for AMD by 2030, assuming a 15% market share; second, he sees the full-stack story unfolding with Helios rack-scale platforms, MI450 accelerators, and next-gen EPYC CPUs deployed together at major hyperscalers.

The recent pullback has created an opportunity for investors to buy into AMD's growth story. Analysts are not budging on their bullish views, despite some cautionary signs such as heavy insider selling and a forward P/E ratio of 63x.