Northland Securities Flags Rising Competition for Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (NASDAQ:AMD) has posted YTD gains of 49.6% as of April 27, putting it among the 10 Large-Cap Stocks that are on Fire Right Now.

Northland Securities Flags Rising Competition for Advanced Micro Devices (AMD)

On April 27, Northland Securities downgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) to Market Perform from Outperform and set a $260 price target. The firm pointed to rising competition. Intel is catching up, while TSMC is working with Nvidia in AI infrastructure and PCs. In that environment, the analyst expects pressure on AMD’s gross margin expansion. R&D spending is also likely to stay elevated. The firm called AMD “a phenomenal company,” but said the calendar year 2027 consensus is “likely too high.”

On April 24, DA Davidson upgraded AMD to Buy from Neutral and raised its price target to $375 from $220. The firm pointed to a “structural increase” in central processing unit demand and “much improved” visibility into AMD’s role in the data center buildout. It also referenced Intel’s Q1 results, which came in stronger than expected. Based on that, the analyst sees “meaningful upside” to AMD’s estimates ahead of its May 5 report. DA Davidson said CPUs are “reinserting itself as an indispensable foundation of the AI era.” It described Intel’s results as a “precursor for a huge step-up” for AMD’s CPU franchise.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing and artificial intelligence. The company operates through three segments: Data Center, Client and Gaming, and Embedded.

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