AMD Upgraded to Buy with $375 Price Target as Shares Drop 9%
AMD shares tumbled over 9% during Tuesday's AI-driven chip sell-off, reflecting concerns after reports of OpenAI missing user and revenue targets. D.A. Davidson upgraded AMD to Buy, lifting its price target from $220 to $375 and boosting its 2026 revenue forecast by $2 billion and gross profit by $1.5 billion.
1. AI Growth Concerns Trigger Chip Sell-Off
Concerns over OpenAI missing internal user and revenue targets sparked a broad semiconductor sell-off, driving AMD shares down over 9% in a single session. The decline reflected investor worry that slower AI adoption could curb future data-center spending and chip demand.
2. D.A. Davidson Raises Rating, Price Target and Forecasts
D.A. Davidson upgraded AMD to Buy, increasing its price target from $220 to $375 and raising its 2026 revenue estimate by $2 billion alongside a $1.5 billion gross profit boost. The firm highlighted stronger-than-expected CPU demand tied to agentic AI workloads as the catalyst for its bullish outlook.