Advanced Micro Devices (AMD) Down More Than 13.9%, Here’s What You Need to Know

Core Viewpoint - Advanced Micro Devices, Inc. (NASDAQ:AMD) is considered one of the best stocks to buy and hold for 2026, despite a recent share price decline of 13.97% over the past month. Analysts maintain a positive outlook, with a 12-month price target indicating a potential upside of 38.7% from current levels [1]. Group 1: Analyst Ratings and Price Targets - Louis Miscioscia from Daiwa reiterated a Buy rating on AMD with a price target of $300. Cantor Fitzgerald and Bank of America Securities also maintained Buy ratings but reduced their price targets, with Cantor lowering from $350 to $300 and BofA from $300 to $260 [2]. - Analyst Vivek Arya from BofA noted that the reduced price target reflects an updated outlook for U.S. semiconductor stocks, anticipating 2026 as the midpoint of an 8 to 10-year AI infrastructure cycle, with expected volatility due to increased investor scrutiny [3]. Group 2: Market Trends and Demand - C J Muse from Cantor Fitzgerald expects the Philadelphia Semiconductor Index to outperform the S&P 500 by about 30 points in 2025, driven by increased demand in AI compute, networking, memory, and equipment sectors. Despite short-term caution due to mixed signals, the macro environment remains robust due to rising demand for AI infrastructure [4]. - AMD operates as a global semiconductor company, manufacturing GPUs, microprocessors, and high-performance computing solutions, serving high-growth industries such as gaming, data centers, and AI [5].