AMD's AI Chip Roadmap Under Scrutiny: Wall Street Stays Bullish Despite Production Rumors
SANTA CLARA, Calif. — Advanced Micro Devices (NASDAQ: AMD) finds itself at the center of a Wall Street debate. Recent industry reports suggesting a delayed timeline for its highly anticipated MI450-series data center chips briefly rattled investors last week. Yet, despite the noise, heavyweight analysts are doubling down on their optimistic outlook for the semiconductor giant.
The controversy ignited when research firm SemiAnalysis indicated the MI450-series might be falling behind schedule. The news contributed to a single-day sell-off on January 30, with shares dipping over 6%. The reaction underscored the intense market focus on AMD's execution in the high-stakes artificial intelligence accelerator race, where it seeks to challenge rival Nvidia's dominance.
However, the bearish sentiment was quickly countered. "We see any weakness as a buying opportunity," said UBS analyst Timothy Arcuri, who on January 26 raised his price target on AMD from $300 to $330. He cited "unabated demand" for the company's AI portfolio as the core driver. Echoing this confidence, Wells Fargo's Aaron Rakers dismissed the delay rumors outright. On January 29, he reiterated an Overweight rating and a $345 price target, asserting that AMD is on track to begin ramping up MI450 production in the second half of 2026.
The analyst consensus remains strongly favorable. Of the 58 analysts covering AMD, 79% maintain a Buy rating, with a median price target of $290.50—suggesting a potential upside of over 22%. This optimism is backed by AMD's staggering performance: shares have soared approximately 100% over the past year through January 30, cementing its status as a top performer.
AMD's strategic position is bolstered by its diverse portfolio across Data Center, Client, and Embedded segments. The success of its AI accelerators, like the MI300 series, is critical to its long-term growth as enterprises worldwide scramble to build out AI infrastructure.
Street Talk: Mixed Reactions from the Floor
We gathered instant reactions from three market participants:
Michael Chen, Portfolio Manager at Horizon Capital: "This is classic short-term noise versus long-term signal. The structural demand for AI compute is undeniable, and AMD has proven it's a credible second source. A minor schedule adjustment in a multi-year roadmap doesn't change the thesis."
David Park, Independent Tech Analyst: "The sharp sell-off on the rumor shows how jittery this market is. But the swift rebound and analyst support indicate strong institutional conviction. The fundamentals—market share gains, expanding TAM—are intact."
Sarah Miller, Editor at 'The Circuit Breaker' Newsletter: "It's getting repetitive. Analysts raise targets, a rumor hits, they rush to defend. Where's the scrutiny? If one report can wipe billions off the valuation, maybe the street is too complacent. This 'buy every dip' mantra in AI feels like a bubble waiting for a pin."
Disclosure: None. This analysis is based on publicly available information and analyst reports.