Advanced Micro Devices (NASDAQ: AMD) has been a solid performer so far this year, with gains of 50%, but shares of the chipmaker have pulled back significantly in recent months and are down 25% from the 52-week high they hit in June this year.

This recent pullback may seem a tad surprising, as AMD's second-quarter results, which were released on Aug. 1, turned out to be better than expectations. What's more, the company's guidance for the third quarter points toward a marked improvement in its financial performance following a difficult first half when its revenue and earnings fell on account of weak demand from the personal computer (PC) market and softness in the enterprise data center business.

However, analysts are upbeat about AMD's prospects for the next year. The stock carries a median 12-month price target of $145, according to a consensus of 40 analysts covering AMD. That points toward a 51% jump from current levels. But can AMD live up to Wall Street's expectations by coming out of the slump it has been in for the past three months?

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Source Fool.com