AMD Stocks Declining While Future Expectations

Advanced Micro Devices (AMD) shares fell on Tuesday following negative comments from Morgan Stanley. Analyst Joseph Moore gave the stock a 'Hold' rating, setting a price target of $246, which indicates that no significant increase is expected from the current level. Moore stated that AMD is in a good position, but the growth of graphics processing units (GPU) may slow down in the short term. However, it was noted 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 $8.76 billion in sales. The company has reported better-than-expected results six times in earnings and seven times in revenue over the past eight quarters. This creates a solid foundation for the company's future performance. Despite the drop before earnings, the stock traded up more than 110% in 2025; this has occurred due to demand in the artificial intelligence sector and the expansion of data centers.

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