AMD Falls 2.5% Premarket Despite Analyst Price Target Hikes as TSM Capex Concerns Trigger Sector Selloff

According to UBS analyst Timothy Arcuri and TheFly, AMD stock fell more than 2.5% in premarket trading on July 16 as Taiwan Semiconductor Manufacturing Corp.'s sharp increase in capital expenditure triggered concerns about unsustainable spending in the AI industry. TSM raised its 2026 capex forecast to $60 billion to $64 billion from the previous $52 billion to $56 billion range.

Meanwhile, UBS raised AMD's price target to $700 from $670, implying 32% upside from the last close, while maintaining a 'Buy' rating. Rosenblatt also raised its target to $665 from $490 with a 'Buy' rating, naming AMD its top semiconductor long idea ahead of earnings in early August.