With earnings around the corner, AMD and Palantir are drawing investor focus. One powers AI chips, the other builds intelligent software—but which is Wall Street’s favorite?
AI Earnings Season: The Spotlight Is on AMD and Palantir
As Q3 2025 earnings season heats up, Advanced Micro Devices (AMD) and Palantir Technologies (PLTR) are two of the most closely watched AI-driven stocks. Both have posted strong gains in 2025—AMD is up 93% year-to-date, while Palantir has surged 135%. But ahead of earnings, Wall Street’s sentiment clearly favors one over the other.
AMD: Riding the AI Hardware Wave
AMD has been riding high on momentum in its data center and AI chip business. New partnerships with OpenAI and Oracle have reinforced AMD’s growing status as a leading provider of AI GPUs. These deals showcase AMD’s role in building the core infrastructure behind artificial intelligence.
Key Q3 Expectations:
- Earnings per Share (EPS): $1.17 (▲ 27% YoY)
- Revenue Forecast: $8.74 billion (▲ 28% YoY)
Analyst Sentiment:
Top HSBC analyst Frank Lee raised his price target to a Street-high $310, emphasizing that AMD’s AI GPU business is still underestimated. His long-term forecasts for 2026 and 2027 are 50%–45% above consensus, signaling strong confidence in continued growth.
- Wall Street Rating: ★ Strong Buy
- Average Price Target: $250.22
- Upside Potential: ~7%
Lee believes AI chip demand will continue to expand pricing power and shipments, making AMD a key beneficiary of the AI infrastructure boom.
Palantir: AI Software Giant with Strong Momentum—But Rich Valuation
Palantir has had a stellar run in 2025, fueled by robust government contracts, expanding commercial adoption, and a strong push into AI-enabled data analytics. Recent collaborations, like the Snowflake partnership, aim to strengthen Palantir’s position in both the public and private sectors.
Key Q3 Expectations:
- Earnings per Share (EPS): $0.17 (▲ 70% YoY)
- Revenue Forecast: $1.09 billion (▲ ~50% YoY)
Analyst Sentiment:
Piper Sandler’s Clarke Jeffries calls Palantir a “secular winner in the AI revolution,” expecting continued momentum from both the government and commercial segments. However, valuation remains a sticking point.
- Wall Street Rating: ★ Hold
- Average Price Target: $157.65
- Downside Risk: ~11%
Despite its growth, analysts seem to believe Palantir’s future optimism is already priced in, especially given its premium valuation multiples.
AMD vs. PLTR: Analyst Comparison at a Glance
| Metric | AMD | Palantir (PLTR) |
|---|---|---|
| YTD Performance | +93% | +135% |
| Q3 EPS Estimate | $1.17 | $0.17 |
| Q3 Revenue Estimate | $8.74 billion | $1.09 billion |
| Wall Street Rating | ⭐ Strong Buy | ⭐ Hold |
| Average Price Target | $250.22 | $157.65 |
| Upside/Downside Potential | +7% | −11% |
| Sector Role | AI hardware & infrastructure | AI software & analytics |
Verdict: AMD Is Wall Street’s Clear Favorite
While both AMD and Palantir are leaders in AI, Wall Street is currently more bullish on AMD. The company’s combination of hardware leadership, accelerating revenue growth, and underappreciated AI chip potential gives it an edge heading into Q3.
Palantir’s growth story is compelling, but analysts remain cautious due to valuation concerns and high expectations that may limit near-term upside.
For investors looking to capitalize on AI tailwinds with analyst support and solid fundamentals, AMD looks like the better bet going into earnings season.