Advanced Micro Devices (NASDAQ:AMD) ended Friday's trading session at $521.58, a decline of 2.06%, as the broader semiconductor sector experienced a significant selloff. Despite the drop, AMD's stock remains 3.6% above the average Wall Street analyst price target of $502.92, leaving investors with limited margin for error as the company navigates a volatile market environment.
Trading volume on Friday reached 52.7 million shares, approximately 39% above the 65-day average of 37.8 million, according to data. The stock finished the week down 5.4% from Monday's close, reflecting a turbulent period that saw shares swing between gains and losses. Monday's intraday high of $562.99 marked a 52-week peak, but Friday's close sat 7.4% below that level.
The week's price action was far from a steady decline. AMD jumped on Monday, slid sharply on Tuesday, moved little on Wednesday, rebounded on Thursday, and then fell 2.06% on Friday. This pattern suggests a market reset rather than a full-blown rout, though the gap between the current price and the average analyst target narrows the room for error if concerns over AI spending continue to weigh on chip stocks.
Other semiconductor names also faced headwinds on Friday. Nvidia (NASDAQ:NVDA) fell 1.96% to $192.53, Intel (NASDAQ:INTC) dropped 3.67% to $128.32, and the VanEck Semiconductor ETF (NASDAQ:SMH) declined 4.32% to $611.61. The iShares Semiconductor ETF (NASDAQ:SOXX) gave up 5.74% to $589.94. The broader tech sector showed relative strength, with the Invesco QQQ Trust (NASDAQ:QQQ) dipping just 1.35% to $706.52, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) fell 0.50% to $728.99. The PHLX chip index slid 5.3% on Friday and ended the week down 7.9%, according to Reuters.
Market analysts pointed to lingering uncertainties. David Stubbs at AlphaCore Wealth Advisory noted ongoing questions about "profitability and the capex story" in the chip sector. Art Hogan from B. Riley Wealth highlighted that memory prices are creating "renewed inflationary pressure" on the market. Earlier in the week, Bill Northey at U.S. Bank described AI as "a very sentiment-driven sector," but emphasized that data center buildout remains a fundamentally strong area.
Despite the recent pullback, UBS maintains a bullish outlook on AMD. Analyst Timothy Arcuri raised his price target to $670 from $455 on June 24, keeping a Buy rating. UBS now projects AMD's CPU server revenue will reach $16 billion in 2026, $23 billion in 2027, and $29 billion by 2028, with a target of $50 billion by 2030. The firm's confidence is rooted in AMD's strong first-quarter results, which showed revenue of $10.3 billion, up 38% year-over-year, and data center sales surging 57% to $5.8 billion. CEO Lisa Su has called data center the "primary driver" of revenue and earnings.
Analysts have been raising their estimates. According to WSJ/FactSet, AMD's 2026 EPS forecast now stands at $7.47, up from $6.77 ninety days ago, while the 2027 estimate has risen to $13.31 from $10.95. However, the stock's recent outperformance has pushed it above the typical analyst target, creating a delicate balance.
Looking ahead, traders face a shortened trading week due to the July 3 market holiday, with a key payrolls report expected on Thursday. Reuters reported that June jobs data will be released on Thursday, and U.S. financial markets will be closed on Friday. Doug Huber, deputy chief investment officer at Wealth Enhancement, told Reuters that a strong jobs report could signal "the economy's hot," while Brad Conger, chief investment officer at Hirtle & Co, described the Federal Reserve as "very finely balanced."
AMD is scheduled to report its next quarterly results on August 4, according to WSJ/FactSet. Analysts currently expect Q2 EPS of $1.60 and Q3 EPS of $1.84. The stock's ability to maintain its premium above the average target will depend on continued execution in data center growth and broader market sentiment toward the semiconductor sector.
