AMD down 6% amid semiconductor selloff; analysts upbeat

AMD shares fell about 6% Wednesday as a broader selloff in semiconductor stocks weighed on the sector. Micron dropped about 9%, Lam Research fell more than 4%, Intel slid roughly 5%, and the VanEck Semiconductor ETF lost nearly 3%.

The decline came as several brokerages raised price targets and kept positive long-term views on AMD, pointing to AI demand and improving supply conditions. UBS maintained a Buy rating and raised its 12-month price target to $700 from $670. Timothy Arcuri wrote that “Customer-wise, we have always maintained that Amazon will be a major MI450x customer, and we now believe Anthropic might also be on the customer list.” He added that AMD could partner with Cerebras Systems on fast inference solutions and expand into custom chips for data centers.

UBS cited easing capacity constraints at Taiwan Semiconductor Manufacturing and noted increased Chip-on-Wafer-on-Substrate allocation for 2027. The brokerage also highlighted AMD’s “Advancing AI 2026” event scheduled for July 22-23 in San Francisco as a potential catalyst.

KeyBanc kept an Overweight rating and raised its price target to $725 from $530, citing rising server CPU production capacity and an expected second-half 2026 ramp of AMD’s MI455 AI GPU and Helios platform. KeyBanc projected server CPU shipments would grow 15% to 20% this year. Bank of America raised its target to $620 from $550, and TD Cowen increased its forecast to $675.

Trading activity included reduced institutional exposure: ARK Invest sold 9,742 shares of AMD through its ARK Innovation ETF, a transaction valued at about $5.34 million.

AMD’s shares had jumped about 112% over the three months through Tuesday, driven by demand for AI infrastructure and gains in server-processor market share. LSEG data show 45 of 55 analysts covering AMD rate the stock Buy or Strong Buy. Hedge funds increased purchases of U.S. semiconductor stocks at the fastest pace in over three years, and semiconductor names now make up roughly 10% of total hedge fund exposure, down from a nearly 14% peak in May.

A subsidiary of Chinese cloud company Kingsoft received U.S. approval to use certain AMD AI chips that compete with a leading rival product. China accounted for more than 22% of AMD’s fiscal 2025 revenue, compared with just over 24% in fiscal 2024.

Analysts identified upcoming product ramps and industry events as near-term milestones for investors evaluating AMD’s growth prospects in AI and data-center markets.