Despite AMD’s recent 7% stock drop and missed data center targets, Wall Street’s pessimism seems overblown. The company’s Turin chips are outperforming Intel, PC sales remain surprisingly robust, and AI revenues are projected to hit $9.5 billion by 2025. With 23 recent Buy ratings and strong growth across multiple segments, AMD’s path to $175 isn’t just wishful thinking. The market’s current skepticism might just be setting the stage for a dramatic comeback story.
AMD’s ambitious march toward a $175 stock price just hit another speed bump. After missing data center revenue targets, the stock tumbled more than 7% to $111.12, leaving investors wondering if Northland analyst Gus Richard’s optimistic target is just a pipe dream. The numbers don’t lie – AMD has shed nearly half its value since March 2024, when it peaked at $227.
But here’s the thing: Wall Street might be missing the bigger picture. While everyone’s obsessing over AMD’s struggle to carve out its AI chip niche against Nvidia (yeah, good luck with that), the company’s quietly crushing it in other areas. The PC client segment is actually performing better than expected – who would’ve thought people still needed regular computers in 2025? Consensus among analysts indicates a potential 47% surge ahead.
The server CPU business is no joke either. AMD’s Turin chips are making Intel’s Granite Rapids look like yesterday’s news, driving a projected 10% year-over-year revenue growth to $8.5 billion. And let’s talk AI revenues – they’re expected to nearly double to $9.5 billion in 2025, thanks to the MI325X GPU launch. Sure, it’s not Nvidia-level dominance, but it’s something. A balanced portfolio strategy suggests not putting all hopes on AI chip success alone.
The recent stock selloff looks increasingly like an overreaction. The 23 Buy ratings assigned in the past three months show strong institutional confidence in AMD’s potential. While Citi and Bank of America played it safe by lowering their targets to the $110-$135 range, several analysts are sticking to their guns with “Strong Buy” ratings. They’re betting on AMD’s improved fundamentals across multiple segments – not just the headline-grabbing AI chip battle.
Look, AMD’s path to $175 isn’t going to be pretty. The company’s lost about a third of its value over the past year, and competing with Nvidia in AI chips is like bringing a knife to a gunfight. But between the growing server market share, solid PC segment performance, and that ambitious MI325X GPU launch, there might be more upside than the market’s giving credit for. Sometimes Wall Street misses the forest for the trees.
