Analyst updates AMD stock price target amid DeepSeek hype

Stock Performance and Market Context - AMD stock closed at $122.84 on January 24 but dipped to$117.11 by January 27, marking a 4.66% drop and bringing YTD losses to 3.05% [1] - Most semiconductor stocks, including AMD, saw greater losses on January 27 due to the release of China's DeepSeek large language model [2] - Despite the selloff, Wall Street firms remain bullish on the semiconductor sector, including AMD stock [3] Analyst Ratings and Price Targets - Wedbush analyst Matt Bryson reiterated an 'Outperform' rating for AMD but cut the price target from $200 to$150, implying a 28.08% upside from current prices [4] - The reduction in price target was due to moderated expectations for AMD's AI GPU sales, partially offset by increased server expectations [4][5] - The average Wall Street price target for AMD is $173.28, higher than Wedbush's target, while the Street low target is$110, set by HSBC on January 8 [6][8] - Citi also reiterated a 'Moderate Buy' rating for AMD on January 21 but cut its price target from $200 to$175 [8] Industry and Market Outlook - The long-term impact of China's entry into the AI market remains uncertain, and investors are advised to monitor AMD's next earnings call on February 4 for a clearer outlook [9]