Why Nvidia rival AMD may see a 40% rip in its stock

Why Nvidia rival AMD may see a 40% rip in its stock Brian Sozzi · Executive Editor Tue, August 25, 2026 at 12:47 PM EDT 3 min read AMD NVDA A screaming buying opportunity may exist in AMD ( AMD ) after a post-earnings sell-off earlier this month. Raymond James analyst Simon Leopold upgraded his rating on AMD to Strong Buy from Outperform in a new note on Tuesday. He lifted his price target to $641 from $565, which assumes neatly 40% upside from current price levels. The new price target puts Leopold above the average price target of his peers at $613, per Yahoo Finance AlphaSpace data. About 72% of Wall Street analysts who cover AMD rate the stock a Strong Buy or Buy. AMD stock rose 5% in afternoon trading in response. Leopold thinks AMD, with its powerful AI chips, will be a key player in the agent-driven workforce. Moreover, he sees the server central processing unit (CPU) market increasing at a 44% five-year compound annual growth rate to about $201 billion by 2030. "AMD offers the strongest combination of direct earnings leverage, datacenter positioning and market-share gains," Leopold said. The chipmaker has had a series of wins this summer. AMD beat Wall Street expectations across the board for the second quarter earlier this month, posting record non-GAAP earnings per share of $1.66 versus consensus estimates of $1.61. Total revenue surged 50% year over year to a record $11.5 billion, clearing analyst projections of approximately $11.34 billion. The strong top- and bot…