AMD Stock Drops 7% — Should You Buy the Dip? Here’s What Wall Street Says

TLDR

• AMD stock fell nearly 7% on Tuesday after reports that Meta may sell excess AI computing power, raising fears of reduced chip demand.
• D.A. Davidson analyst Gil Luria kept a Buy rating, noting AI compute demand still exceeds supply despite near-term risks.
• Wells Fargo raised its AMD price target to $615 from $505, citing strong EPYC server and AI chip demand from cloud providers.
• UBS lifted its target to $670 and Cantor Fitzgerald went to $700, with Cantor calling AMD its “top compute pick.”
• CEO Lisa Su is set to receive a $36 million equity grant on August 15, with other executives also receiving awards.

AMD stock is down nearly 7% this week, but Wall Street isn’t running for the exits.

Advanced Micro Devices, Inc., AMD

Advanced Micro Devices closed 6.89% lower on July 1, 2026, after a report suggested Meta Platforms may start selling excess AI computing power to third parties. The concern: if Meta has more compute than it needs, it may pull back on future chip orders.

AMD stock has still gained more than 150% year-to-date coming into this week’s drop.

D.A. Davidson analyst Gil Luria acknowledged the near-term risk in a new note but kept his Buy rating intact. His view is that Nvidia remains the go-to for AI chips, but AMD continues to benefit as customers seek alternatives. He also pointed out that AI compute demand still outstrips supply globally, keeping the long-term setup intact.

Analysts Keep Raising Targets

Wells Fargo’s Aaron Rakers lifted his price target to $615 from $505 and maintained an Overweight rating. He sees strong demand for AMD’s EPYC server processors as cloud providers keep building out AI data centers. Rakers also thinks AMD could hit more than $20 in annual earnings per share sooner than the Street expected.

UBS analyst Timothy Arcuri raised his target to $670 from $455, reiterating a Buy. He’s betting on agentic AI driving more demand for server CPUs, and believes AMD will keep taking market share as Intel navigates its own product and supply challenges.

Cantor Fitzgerald is the most bullish of the bunch. Analyst C.J. Muse raised his target to $700 from $500 and kept an Overweight rating, calling AMD his “top compute pick.” He expects AI chip and semiconductor equipment demand to stay strong for years.

CEO Pay Package Adds to the Story

Separately, an SEC filing revealed AMD CEO Lisa Su will receive $36 million in equity awards on August 15, 2026, under the company’s 2023 Equity Incentive Plan. Other executives are also in line for grants — CTO Mark Papermaster gets $10 million, CFO Jean Hu receives $9 million, Chief Sales Officer Forrest Norrod gets $8 million, and President EMEA Darren Grasby receives $7.5 million.

The timing tracks with AMD’s strong recent performance. Revenue jumped 38% year-over-year to $10.25 billion in fiscal Q1 2026.

According to TipRanks, AMD carries a Strong Buy consensus based on 28 Buy ratings and seven Holds.

The average price target sits at $509.75, which implies roughly 5.76% downside from current levels — a reminder that even after the selloff, the stock isn’t universally seen as cheap.

AMD stock was also down another 1.19% in pre-market trading following Tuesday’s close.

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