Advanced Micro Devices (NASDAQ: AMD) Faces Gaming Sector Headwinds Amidst Analyst Price Target

Font: Financial Modeling Prep  • Jun 15, 2026

• Analyst Chris Caso of Wolfe Research has set a price target of $450.00 for Advanced Micro Devices (NASDAQ: AMD), indicating a potential decrease from its recent trading price of $511.57.
• The company's gaming revenues, while up 11% year-over-year to $720 million, experienced a 15% quarter-over-quarter decline, signaling market softness for AMD.
• AMD faces increasing competition from rivals like NVIDIA and Intel, alongside a projected decline of over 20% in its gaming revenues for the second half of 2026 due to an aging console cycle.

Advanced Micro Devices (NASDAQ: AMD) is a major company that designs computer chips. It is known for its central processing units (CPUs) and graphics processing units (GPUs). The company competes directly with other large chipmakers like NVIDIA and Intel in the semiconductor market.

Chris Caso of Wolfe Research sets a price target of $450.00 for AMD. This target is below the stock's recent trading price of $511.57. A price target is an analyst's prediction of a stock's future price, and this one suggests a potential decrease in value from current levels.

This cautious outlook finds support in the company's gaming business performance. As highlighted by Zacks Investment Research, while gaming revenues grew 11% year-over-year to $720 million in the first quarter, they fell 15% from the previous quarter. This drop indicates some market softness.

Furthermore, AMD's semi-custom business, which makes chips for gaming consoles, is in decline as the current console cycle ages. The company projects that its gaming revenues in the second half of 2026 will be over 20% lower than in the first half, signaling market pressures ahead.

The company also faces strong competition. NVIDIA is expanding its market presence, and Intel has launched its own Arc G-Series chips. This increased competition from key rivals adds another layer of challenge for AMD's future growth in the gaming sector.