AMD (AMD, Financials) rose 2.24% to close at $137.82 on Wednesday, recovering from Monday's 1.7% dip after the company slashed prices on its Ryzen chips ahead of Amazon's Prime Day. In Thursday's pre-market session, shares were up another 0.74% to $138.84.
The Ryzen 9 9950X is now selling for $434 — a 33% cut from MSRP. The Ryzen 5 9600X dropped 41% to $165. While the discounts are a win for consumers and could boost market share, they raised concerns earlier in the week over AMD's pricing power and margin sustainability.
The aggressive deals went live before Prime Day officially began, triggering some initial sell pressure. But investors appear to be reassessing the move more positively as a competitive play in the DIY and gaming segments.
Year to date, AMD shares are up 11.66%, though they remain nearly 23% lower over the past 12 months — a reminder of the sector's volatility.
Analyst sentiment remains cautiously optimistic. The stock holds a Moderate Buy rating from 34 analysts, with an average price target of $133.62. Citi's Christopher Danely recently raised his target to $145, citing improved chip demand and better inventory positioning, though he kept a Neutral rating.
Bottom line: The selloff may have been short-lived — and investors are watching whether strong consumer uptake translates into sustainable upside.
