Loop Capital began its coverage of AMD stock (AMD) with a Buy rating and a $175 price target. The firm is confident in the chipmaker’s potential for market share gains and leadership in accelerated computing. Five-star analyst Gary Mobley noted that AMD’s stock has traded like companies “tied to mature markets like PCs and smartphones,” but he believes the company deserves recognition for its progress in GPU-based data center computing and XPUs.
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Nevertheless, Mobley highlighted investor uncertainty about whether or not AMD will emerge as a winner in the AI race by pointing to concerns about slowing performance gains at smaller nanometer nodes. Indeed, it is becoming much harder to improve performance at this point. He also discussed key questions, such as AMD’s ability to capture CPU market share from Intel, benefit from edge AI apps for PCs, and compete with Arm (ARM) in the CPU market.
Still, despite tempered expectations for AI GPU sales in 2025, Mobley is optimistic. He projects that AMD will gain an additional 10% x86 CPU market share by 2028 and control 20% of the data center GPU market. If AMD meets these goals, Mobley forecasts $55-$60 billion in revenue and $11-$11.50 in non-GAAP EPS by FY28.
Is AMD a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on AMD stock based on 21 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 28% decline in its share price over the past year, the average AMD price target of $173.28 per share implies 51.1% upside potential.
