AMD Stock Drops 4% but Analysts Raise Target to $625 Amid AI Growth

Advanced Micro Devices (AMD) Stock Movement and Strategic Developments

Recent Market Reaction

On Tuesday, July 28, 2026, Advanced Micro Devices (AMD) shares fell 4 % to a close of $494.95 following a broader decline in semiconductor equities amid global market weakness. The decline was reported by multiple outlets, including Feeds.Feedburner.com and Channel NewsAsia, which noted that the sector experienced a sell‑off as investors awaited key U.S. interest‑rate decisions and earnings releases.

Analyst Adjustment of Valuation

Despite the short‑term price decline, analysts maintained a bullish outlook on AMD’s long‑term prospects. Mizuho Securities, cited by Blockonomi.com and Feeds.Feedburner.com, increased its price target for AMD to $625. The upgrade was based on the company’s performance during a recent artificial‑intelligence (AI) showcase, where AMD highlighted a 14 GW commitment from major technology firms and the commencement of Venice CPU production. Mizuho also emphasized “strong demand for upcoming AI chips and expanding market opportunities” as key drivers for the revised target.

AI‑Infrastructure Partnerships

AMD announced a partnership with Core Scientific to secure up to 2.5 GW of data‑center capacity for AI workloads. The agreement, reported by SeekingAlpha.com, Channel NewsAsia, and Invezz.com, represents a significant expansion of AMD’s infrastructure to meet growing AI computing demand. The deal is structured to provide AMD with a 500 MW allocation, underscoring the firm’s strategy to support large‑scale AI deployments.

Valuation Assessment

A recent analysis on Feeds.Feedburner.com noted that AMD’s stock remains “overvalued” with a GF score of 79/100. The report highlighted that while the company’s fundamentals—market capitalization of $851 B and a price‑to‑earnings ratio of 173.37—indicate strong scale, the current market pricing may not fully reflect the company’s growth trajectory.

Market Context

The day’s sell‑off was part of a broader trend affecting major chipmakers. Reports from AP News and Fool.com indicated that global indices were mixed, with South Korea’s Kospi dropping significantly due to heavy selling in the chip sector. In the United States, expectations surrounding the Federal Reserve’s upcoming policy announcement and forthcoming quarterly earnings contributed to market caution.