AMD Stocks Declining While Future Expectations

Advanced Micro Devices (AMD) shares fell on Tuesday following negative comments from Morgan Stanley. Analyst Joseph Moore rated the stock as 'Hold' and set a price target of $246, implying that no significant increase is expected from the current level. Moore noted that AMD is in a good position, but the growth of graphics processing units (GPUs) may slow down in the short term. However, it was mentioned that the company plans to launch the MI450 AI accelerator next year.

Wall Street expects AMD to achieve earnings of $1.17 per share and generate $8.76 billion in sales. The company has outperformed expectations in earnings six times and in revenue seven times over the last eight quarters. This sets a solid foundation for the company's future performance. Despite the decline before earnings, the stock has performed with over a 110% increase in 2025; this has been driven by demand in the artificial intelligence sector and the expansion of data centers.

Over the past year, the shares have increased by 83%, reflecting investors' optimism about the growing importance of high-performance computing.