AMD, Zoom Upgraded on AI and Data Center Strength; Chipotle Cut on Margin Woes

Wall Street analysts adjusted their outlooks on several key companies this week, upgrading technology firms like Advanced Micro Devices and Zoom on long-term growth potential while downgrading Chipotle Mexican Grill amid concerns over consumer spending and rising costs.

Tech and AI in Focus

Analysts showed renewed confidence in technology companies poised to benefit from data center demand and artificial intelligence integration.

• Advanced Micro Devices (AMD): Raymond James upgraded the chipmaker to Strong Buy from Outperform, raising its price target to $641. The firm cited stronger-than-expected server CPU demand, which it believes will delay the point at which GPU revenue overtakes CPU revenue. Raymond James now projects AMD will surpass Intel in server CPU revenue by 2027.
• Zoom Video Communications (ZM): Benchmark upgraded the company to Buy, highlighting its resilient enterprise customer base and a robust operating margin of 24.6%. The firm also pointed to Zoom's substantial net cash balance and its equity stake in AI firm Anthropic as potential catalysts, particularly if Anthropic pursues an IPO.
• Workday (WDAY): Guggenheim upgraded the enterprise software firm to Buy. The analyst noted accelerating adoption of its Human Capital Management and financial suites, effective monetization of AI features, and expanding operating leverage, which could support mid-teens subscription revenue growth.

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Shifting Consumer and Energy Landscapes

In the consumer and energy sectors, analysts focused on margin pressures and structural tailwinds.

• Chipotle Mexican Grill (CMG): Baird downgraded the restaurant chain to Neutral from Outperform, cutting its price target to $40 from $44. The firm's reasoning centered on the need for significantly heavier reinvestment to generate low-single-digit sales growth, which it said was "crushing margin recovery." Baird also pointed to macroeconomic pressures on lower-income consumers and weak foot traffic across the fast-casual sector.
• First Solar (FSLR): BMO Capital upgraded the solar panel manufacturer to Outperform with a $263 price target. The firm emphasized First Solar's position as a key beneficiary of domestic content incentives and its fully booked backlog extending past 2027, which provides long-term pricing visibility. Analysts also cited growing power demand from AI data centers as a structural tailwind for the utility-scale solar market.