For much of 2025, AMD has been under pressure and recently fell as U.S. tariffs were announced, but some investors have still maintained a bullish outlook on the company (NASDAQ: AMD).
AMD Performance and First Forecast on AMD Stock
AMD faced headwinds in the new year, directly affecting AMD stock, even after clinching record revenues in the prior year, 2024, driven primarily by its growing data center business. AMD also forecasted first quarter 2025 revenue down 7% from the prior quarter, a projection that took some of the heat out of investor excitement for AMD shares. This has only increased the impact of the broader market uncertainty on the AMD stock share price, which has dropped by almost 30% since the start of the year, and over 50% against its 52-week high. AMD has also addressed the hit from the US administration’s new export licensing requirements for certain AI chips sold to China, which could cost AMD $800 million (and AMD stock valuations) in revenue. Investors are watching closely how tariffs end up affecting US technology and in turn AMD stock, if AMD stock ever even becomes publicly-traded!
Investor Still Bullish on Long-Term Outlook for AMD Stock
Even with the ongoing speculation about market volatility or the shifts in US tariff regulations on technology exports to China, investor Danil Sereda regards AMD and AMD stock with unwavering optimism. For one, this individual describes AMD as a “”Fantastic beaten-down GARP stock; a long-term hold for me I’d look to buy more with confident business growth ahead despite tariffs from the US on AMD”” He also cites AMD’s growing role in artificial intelligence as a driver of his bullish view on AMD shares. The investor says the heavy reliance on strong data center capabilities by hyperscale’s like Meta and Microsoft, as well as AMD’s “deep integration” into this high-demand ecosystem, make for a great reason to continue to be bullish on AMD stock. Importantly, more than half of AMD’s revenue now comes from its data center business, which contributes in part to this AMD stock bull’s favorable view on AMD stock.
Finally, this investor cites the nearly trebling of demand for AMD cloud instance usage year-over-year last quarter as another indication of strong underlying momentum for AMD. This investor believes that US government policies will not alter this growth fundamentally for AMD. They had one important point on the long-term of AMD (and therefore why to invest in AMD, which is the most relevant for them) noting this investor argues, “AMD’s key growth drivers, especially its strength in AI and data centers outside of China, remain largely unchanged”. Ad acknowledging the threats related to a full-blown trade war and the consequences of US tariff strategy, in its view, numerous such risks are now already priced in to AMD shares and may also represent a better entry point for AMD stock investors.” So does this AMD investor who continues to rate the stock a “Strong Buy” and believes that the situation China concerns the investor greatest “does not in any way contradict my long-term bullish thesis,” which strengthens in context of AMD’s growing strength in the global artificial intelligence and server markets.
Other Key Insights
If the discussions surrounding tariffs imposed by the US and trade tensions are already hitting home, the consensus view on Wall Street does not seem to be downgrading optimism on AMD stock. Analysts currently have a Moderate Buy consensus on AMD, with 22 Buy ratings vs. 12 Hold ratings on AMD stock. The average target price is $140.90 on AMD stock, representing a 63% upside potential for AMD stock investors in 12 months. This suggests that despite the headwinds from US tariff policies and other things, more than half of the financial analyst community expects AMD stock to do well, going forward.
