Wall Street Says AMD Stock Could Gain 40% in a Year

Core Viewpoint - Advanced Micro Devices (AMD) has experienced a stock pullback of over 12% from its peak due to financial impacts from U.S. export restrictions to China, affecting its second-quarter performance [1][2] Financial Performance - AMD reported a year-over-year decline in artificial intelligence (AI) revenue within its data center segment, primarily due to lost MI308 accelerator sales to China and a transition to the next-generation MI350 series accelerators [2] - Despite the revenue dip, management views this as a temporary setback rather than a long-term issue [2] Future Outlook - The outlook for AMD appears positive, with expectations that the ramp-up of the Instinct MI350 series will enhance AI-related sales and significantly boost the data center business [3] - Analysts maintain a cautiously optimistic outlook, recognizing near-term challenges but identifying significant upside potential for AMD stock as the company advances its AI roadmap and meets growing demand in core businesses [4] Growth Drivers - AMD is experiencing strong momentum in its server and PC processors, positioning itself to benefit from AI-driven demand [5] - The EPYC server processor portfolio has gained traction among cloud providers, enterprises, and telecom operators, with increasing adoption among large hyperscalers [6] - Significant enterprise deals have been secured across various sectors, including aerospace, financial services, streaming, retail, and energy, with notable growth in enterprise deployments from the previous quarter [7]