BofA Raised Its Earnings Estimates but Cut Its Target on AMD (AMD), Here’s Why Farooq Wed, November 11, 2026 at 1:02 PM EST 4 min read AMD +9.80% ^IXIC +2.28% ^GSPC +1.65% Trade AMD on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the Analysts Just Slashed Their Price Targets on These 10 Stocks and Advanced Micro Devices (NASDAQ:AMD) ranked 8th on this list.
Wall Street had its worst day in 19 months last Thursday, with chip stocks leading the selloff. The Nasdaq Composite fell 5.52% to 24,315.00, its biggest one-day drop since the April 2025 tariff announcement. The S&P 500 fell 4.36% to 7,353.73, erasing about $3 trillion in market value and marking its worst day since that same tariff crash. The Dow lost 3.44%.
The Nasdaq is now in a correction, more than 10% below the record close it set last month. Volume was heavy: 26.9 billion shares changed hands, against a 20-session average of 17.7 billion.
The trigger was politics. Investors worried about tighter AI regulation after Democrats won control of Congress, including in states where opposition to new data centers has been growing. The Philadelphia SE Semiconductor index fell more than 12% in one session, its worst day since March 2020. Candidates in both parties had campaigned against AI data centers, Yahoo Finance's Jared Blikre reported.
Melissa Brown, global head of investment decision research at SimCorp, said some newly elected members of Congress and governors want to slow the pace of AI infrastructure development, and that any slowdown would raise concerns. We covered the group's earlier pullback in our list of oversold AI stocks that Wall Street analysts saw 50%+ upside in, published before the selloff.
Jed Ellerbroek, portfolio manager at Argent Capital Management, called Thursday "the capitulation phase for the data center capex beneficiary stocks" and said the size of the moves looked excessive. Chip stocks did bounce on Friday: the semiconductor index rose 4.2% and the Nasdaq gained 1.1% to 24,579.43, and the S&P 500 rose 0.32% to 7,376.86, while the Dow slipped 0.46% to 51,285.73. But the Nasdaq still posted its fourth straight weekly decline, down 3.4% for the week, while the S&P 500 fell 2.7%, its worst week since June, and the Dow fell 0.9%.
Readers weighing how far the technology sector has fallen can also look at our roundup of technology stocks trading near 52-week lows that analysts favor. Through Thursday's close, the S&P 500 was still up 7.4% for 2026 and the Nasdaq up 4.6%. Friday's jobs report showed employers added 165,000 jobs in October, against 59,000 expected, and the unemployment rate fell to 4.1%. Traders expect the Federal Reserve to raise interest rates next month, following a hike in September.
AMD made it to our list because it has an average upside potential of 30%. BofA lowered its price target on AMD to $650 from $720 on November 4, even though it raised its 2027 and 2028 earnings estimates. It cited "the recent contraction in sector multiples," so the business outlook improved while the multiple it will pay for chip stocks fell. Mizuho kept an Outperform rating the same day but cut its target to $610 from $705, the largest cut we found among the major firms.
The business itself is growing quickly. Revenue was $13.4 billion, up 45%. AMD's data center sales rose 97% last quarter to $8.5 billion, which is 64% of total sales. Adjusted earnings per share of $2.09 beat the $1.95 analysts expected, and CEO Lisa Su said she expects revenue to grow more than 80% in 2027. The stock still fell about 17% in the chip selloff that followed, even though BofA was raising its earnings estimates at the same time.
AMD sells processors for PCs and servers along with AI accelerators. We wrote about its premium valuation in our piece on how execution looks under the microscope at that price.
While we acknowledge the risk and potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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