Why AMD Stock Is Falling Premarket Today Despite Fresh Price Target Hikes

AMD stock dropped more than 2.5% in premarket trading after TSM raised its 2026 capital expenditure forecast to $60–64 billion from $52–56 billion, sparking concerns about unsustainable AI industry spending. Despite the selloff, UBS raised its AMD price target to $700 from $670 with a Buy rating, while Rosenblatt lifted its target to $665 from $490 and named AMD its top semiconductor long idea ahead of earnings in early August.

Why it matters: Wall Street optimism is further buoyed by AMD's upcoming AI Day event on July 22–23 in San Francisco, though the 12-month average analyst price target of $536.36 implies only about 1% upside from the last close.