Wedbush zvýšila cílovou cenu AMD na 600 USD z 450 USD po konferenci Advancing AI 2026. Důvodem je silnější výhled pro AI v datových centrech díky novým partnerstvím a lepším dodávkám.
Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) saw its price target raised to $600 from $450 by Wedbush following the chipmaker’s Advancing AI 2026 event, with the analysts writing that new partnerships and improving supply chain conditions increased confidence in the company’s data center AI growth trajectory.
AMD hosted its Advancing AI 2026 event on Wednesday and Thursday, featuring a keynote presentation from CEO Lisa Su and management followed by an investor roundtable. Wedbush noted that management avoided discussing near-term financial performance ahead of AMD’s second-quarter 2026 earnings report, leaving the event focused primarily on the company’s broader AI strategy.
The analysts wrote that AMD is increasingly positioning itself as an “end-to-end compute franchise” spanning GPUs, CPUs, networking, software, client computing and physical AI, while highlighting a broad group of enterprise and frontier AI partners.
“Net, we came away incrementally more constructive on AMD's competitive trajectory,” Wedbush wrote, adding that conversations with server vendors and supply chain participants around the event pointed to continued acceleration in AI infrastructure investment and opportunities across the broader ecosystem.
Wedbush wrote that newly announced agreements with Microsoft and Anthropic provided greater confidence that AMD’s data center AI silicon and systems revenue will “substantially accelerate” in the second half of 2026 and through 2027.
The analysts also highlighted improving supply conditions, writing that AMD appears to be making progress in addressing constraints and meeting elevated customer demand for data center compute. Based on the event and industry checks, Wedbush increased its assumptions for AMD’s data center CPU and GPU revenue growth in 2026 and 2027, lifting its revenue and earnings expectations.
Wedbush also pointed to AMD’s partnership with Cerebras, writing that the collaboration combines Cerebras’ Wafer Scale Engine technology with AMD systems to target ultra-low-latency AI inference workloads. Initial deployments are expected later this year through Cerebras Cloud.
The analysts wrote that the relationship is likely to be revenue accretive compared with prior expectations for Cerebras and represents further validation of the company’s approach to delivering high-speed AI inference capabilities.
Wedbush also highlighted VAST Data as a potential beneficiary of AI infrastructure spending, writing that the privately held company appears to have emerged as a significant supplier of data management solutions for neocloud and AI model-building customers.
While the analysts noted that VAST’s software licenses can represent a meaningful cost for customers, they wrote that users highlighted benefits including improved storage efficiency, ease of use and faster returns on cloud infrastructure investments.
On Super Micro Computer, Wedbush wrote that industry conversations supported the view that the company’s recent margin expansion could be partly sustainable, potentially driven by a shift toward higher-value deployments and tight supply conditions. However, the analysts noted they would have greater confidence in the margin outlook with additional feedback on changes within Super Micro’s business.
Wedbush said continued AI infrastructure investment should support further growth across the sector, citing conversations with neocloud providers, data center builders, server vendors and component suppliers that pointed to ongoing acceleration in data center expansion.
The analysts also highlighted memory demand tied to AMD’s AI products, noting that newer Instinct offerings are expected to require significantly more high-bandwidth memory. Wedbush wrote that tight NAND and DRAM availability could continue until additional supply comes online in 2028, with price increases potentially starting at 20% in the third quarter and exceeding 30% in some cases.
Shares of AMD are up more than 150% so far this year, trading hands at $538 on Friday afternoon.
Schneider Electric a AMD představily první referenční návrh platformy Helios pro rychlejší a méně rizikové nasazení AI Factory. Návrh podporuje AI racky až do 246 kW a klastrové nasazení až do 10,4 MW IT zátěže.
Co-engineered reference design provides a proven blueprint for deploying high-density AI clusters faster and with less risk. Design supports 246 kW AI racks and large-scale deployments with modular AI clusters of up to 10.4 MW IT load for easy scalability Collaboration combines AMD AI platform innovation and Schneider Electric’s expertise in power, cooling, and digital infrastructure SAN FRANCISCO, July 23, 2026 (GLOBE NEWSWIRE) -- Schneider Electric, a global energy technology leader, and AMD today announced a jointly developed and validated reference design for the AMD Helios rackscale solution that provides a scalable blueprint for deploying high-density AI environments faster and with reduced risk and complexity. The reference design marks the first milestone of the collaboration between Schneider Electric and AMD and delivers upon the companies’ joint focus to create an easier path to AI Factory deployment.
The new reference design is the first ever developed to support high-density AI workloads on the Helios rackscale solution, which is powered by AMD Instinct™ MI455X GPUs, 6th Gen AMD EPYC™ CPUs, AMD Pensando™ Vulcano NICs and the open ROCm™ software ecosystem. AMD Helios is designed to deliver breakthrough AI performance through advances in compute, interconnect bandwidth, memory capacity and system-level integration, allowing customers to run larger, more complex AI workloads faster while optimizing power and efficiency.
As AI workloads push data center infrastructure to unprecedented limits, reference designs provide data center architects and operators with tested, scalable designs proven to handle new power densities, thermal requirements and operational complexity. By modeling data center physical infrastructure performance, these pre‑validated blueprints help shorten the planning process by defining how power, cooling, and IT infrastructure should be organized to build a reliable, scalable, and AI‑ready data center. The AMD Helios reference design includes information on four technical areas: facility power, facility cooling, IT space, and lifecycle software.
“Today organizations require comprehensive, AI-ready reference designs that can take them from planning to deployment faster and with less risk," said Manish Kumar, Executive Vice President, Secure Power & Data Centers at Schneider Electric. “Through our collaboration with AMD, we're delivering an engineering-backed reference design that bridges the gap between advanced AI compute platforms, energy tech, and real-world data center implementation, enabling customers to deploy scalable, high-density AI environments with greater confidence, efficiency, and speed.”
“AI infrastructure is rapidly moving to full-scale AI factories, and that requires compute, networking, power and cooling to be designed together from the start,” said Forrest Norrod, executive vice president and general manager, Data Center Solutions Business Group, AMD. “AMD Helios provides an open, rack-scale architecture built to deliver the performance, efficiency and flexibility required for next-generation AI workloads. By working with Schneider Electric to create a validated reference design, we are giving customers a practical blueprint to accelerate high-density AI deployments, reduce integration risk and scale with greater confidence and efficiency.”
The new collaboration brings together AMD AI platform innovation and Schneider Electric’s expertise in power, cooling, and digital infrastructure, creating a more tightly integrated approach to deploying both greenfield AI factories and high-density retrofit environments. The reference design supports:
Modular, multi-cluster environments, featuring AI clusters of up to 10.4 MW IT capacity for greenfield deploymentsHigh-density AI workloads up to 246 kW per rackAdvanced liquid cooling using Motivair by Schneider Electric CDU-based and hybrid air/liquid approaches capable of removing up to 84% of heatA digital-first infrastructure approach, which includes: Electrical and thermal design validated using ETAP and EcoStruxure™ IT Design CFD simulation tools that enable real-time monitoring and analytics, AI-driven predictive maintenance, and system-level optimization across power, cooling, and ITIntegrated Electrical Digital Twin capabilities to model, analyze, and manage infrastructure performanceSupport from AVEVA’s Unified Operations Center for real-time monitoring and operational visibility Power and cooling infrastructure deployments that adhere to AMD Helios platform requirements for reduced integration complexity and deployment riskBetter energy efficiency, with ability to achieve PUE as low as ~1.12 at full load The reference design has been validated to ANSI standards for U.S. deployments, with plans to extend the framework to support IEC standards for global implementations in the future.
Data Center Reference Design 121: 10.4 and 6.2 MW, Tier III, ANSI, Chilled Water, Liquid-Cooled AI Clusters (AMD Instinct MI455X GPUs) About Schneider Electric
Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory.
With 160,000 employees and one million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.
www.se.com
Discover the newest perspectives on Advancing Energy Tech on Schneider Electric Insights.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/92c9a990-e87a-4338-92c6-09f0748e2c4a
Schneider Electric and AMD release first Helios platform reference design to accelerate AI Factory d... Schneider Electric and AMD release first Helios platform reference design to accelerate AI Factory d...
AMD uvedla, že první dodávky systémů Helios začnou v září, ve 3. čtvrtletí, a rozjedou se do 4. čtvrtletí i první poloviny příštího roku. Firma zároveň vidí rostoucí poptávku po CPU díky agentic AI.
TSMC’s Price Hikes Could Show Which AI Chip Stocks Have Real Pricing PowerAdvanced Micro Devices NASDAQ: AMD executives used a question-and-answer session at the company’s Advancing AI 2026 conference to expand on its AI data center roadmap, customer engagements and expectations for growth in CPUs, GPUs and full rack-scale systems.
Chair and CEO Dr. Lisa Su said AMD is “tremendously excited” about the opportunity in AI and highlighted the company’s Venice CPU launch and Helios rack-scale systems as key parts of its strategy. Matt Ramsay, who leads financial strategy and investor relations at AMD, told participants that management would not discuss near-term financial results ahead of the company’s upcoming second-quarter earnings report.
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AMD Sees Expanding CPU Opportunity From Agentic AI AMD’s $5 Billion Anthropic Deal Could Redraw the AI Chip BattleExecutives said AI workloads are increasing demand for CPUs, particularly as agentic AI requires more orchestration around end-to-end workloads. Su said AMD remains focused on capturing more than 50% of the CPU market, citing progress in recent quarters and rising customer interest in Venice.
Dan McNamara, who runs AMD’s server business, said the company’s estimate of the CPU server market was based on customer discussions and analysis of AMD’s own workloads. In the “outer years,” he said agentic AI applications could represent “probably like 50%” of the CPU server opportunity.
The 2026 Blueprint: 6 Stocks for a Brand New PortfolioSu added that CPU-to-GPU ratios could change meaningfully as AI systems evolve. While some head-node configurations today may use four GPUs per CPU, she said agentic AI could eventually push the ratio above one CPU per GPU, potentially reaching two CPUs for one GPU in some scenarios.
Helios Shipments to Begin in September Su clarified that AMD expects first shipments of Helios systems to begin in the third quarter, specifically in September. She said the ramp will continue into the fourth quarter and the first half of next year.
“We’ve actually built the ramp this way because it is a complex system,” Su said, adding that AMD wants original design manufacturers to tune the manufacturing process and align shipments with customer data center buildouts.
On customer deployments, Su said Anthropic, OpenAI and Meta moving into Helios is “a big deal for AMD.” Regarding Anthropic, she said AMD will start shipments for the first gigawatt in the first half of 2027 and aims to get as much of that first gigawatt into 2027 as possible, depending on data center readiness. AMD previously announced up to 2 gigawatts for the MI450 engagement with Anthropic.
Customer Deals Seen as Multi-Generation Relationships Asked about the Anthropic agreement, Su said each large customer engagement is structured differently, but she emphasized that customers generally do not choose an accelerator for only one generation because of the engineering effort involved.
“We are actively talking with every one of our largest customers, including Anthropic, about what’s beyond MI450,” Su said. She said there is “a lot of excitement” around MI500 and discussions about future workloads beginning with MI600.
Vamsi Kompella, who runs AMD’s AI business, said AMD is also working with Anthropic to tune and extend Claude’s capabilities for high-performance optimization on AMD platforms. He said AMD’s open approach to instruction sets, compilers and tool chains helps AI systems become productive on the platform more quickly.
Kompella also discussed ROCm.ai, calling it AMD’s biggest software leap since the early days of its strategy. He said collaborations with OpenAI on Codex and Anthropic on Claude are expected to improve developer access to AMD platforms over the coming months.
Manufacturing, Power and Deployment Are Key Focus Areas Su said AMD’s market projections consider not only demand but also power availability, supplier capacity and customer capital. She said AMD has planned capacity for “significant growth” in 2027 and 2028, while longer-term growth in 2029 and 2030 would require the broader ecosystem to build at a similar pace.
Forrest Norrod, who leads AMD’s data center business, said AMD is working closely with OEM and ODM partners, including Sanmina and Wiwynn, to ensure capacity to build, integrate, test and validate rack-scale systems. He also said AMD retained a large services arm from its ZT acquisition, which is being used for internal deployments and to help customers deploy MI350 and MI455 systems.
Su added that AMD now works with customers much earlier in the data center planning process, saying the company has “easily 12 to 18 months of visibility” into power planning and corresponding GPU and Helios system needs.
Roadmap Includes MI500 Networking and Memory Flexibility Norrod said the MI500 generation is expected to begin a transition from purely electrical scale-up networking toward optical networking, though he emphasized it will not be an immediate shift. He said AMD is working with ecosystem partners and expects optical technologies to play a larger role over future generations.
On scale-up protocols, Norrod said MI450 supports UALink transported over Ethernet and that ESUN is a set of Ethernet extensions that can help with that approach. He said AMD expects UALink over Ethernet to continue into MI500, while adding that the company will provide more detail closer to the MI500 timeframe.
Asked about HBM memory, Kompella said AMD studies workload characteristics and separates bandwidth and capacity considerations. He said AMD’s chiplet architecture gives it flexibility to optimize memory capacity while preserving bandwidth constraints. Su added that memory capacity remains valuable to customers, including for inferencing performance, but said AMD will work to ensure memory is used efficiently because it is a significant part of total cost of ownership.
Su closed the session by saying AMD views AI as “a complete compute picture,” spanning CPUs, GPUs, Helios systems and other compute elements. She said AMD believes it can differentiate through an end-to-end approach across AI infrastructure.
About Advanced Micro Devices (NASDAQ:AMD)Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.
Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.
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AMD se spojuje se startupem Cerebras na novém přístupu k AI inferenci a jeho Helios má být v datacentrech Cerebras ještě letos. Firma tvrdí, že Helios přináší až o 30 % více inferenčních tokenů na dolar než Nvidia Vera Rubin NVL72.
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AMD president and CEO Lisa Su. Leon Neal/Getty Images AMD is making a bet about the future of AI: one chip shouldn't rule them all.
CEO Lisa Su announced Thursday that AMD is teaming up with chip startup Cerebras on a new approach to AI inference, which is the process of generating responses from AI models.
Increasingly, chipmakers are pursuing "disaggregated inference," which splits workloads across different types of hardware. AMD's partnership with Cerebras shows the company is betting big on this approach.
Traditionally, the same hardware handled both processing a prompt and generating an answer. AMD argues those are fundamentally different jobs. Helios, its latest server system, is designed to process huge volumes of requests, whereas Cerebras' giant, wafer-sized chip specializes in generating near-instantaneous responses.
The partnership will bring Helios into Cerebras' data centers later this year.
Demand for chips from companies like AMD, Nvidia, and Broadcom has skyrocketed in the AI boom. Nvidia dominates chip design for AI training, and the competition has intensified as AI companies shift focus from training models to putting them to work.
The AMD and Cerebras pact aligns with a broader shift that analysts say is already underway, with UBS writing in June that the limitations of current architectures "are driving a shift toward disaggregated inference."
UBS wrote that Nvidia — through its integration of AI hardware startup Groq — and Amazon Web Services are also pursuing similar setups to improve efficiency and lower costs. That said, UBS wrote that disaggregated inference presents new challenges around "orchestration" — or getting different chips to work together seamlessly.
At Advancing AI, AMD unveiled Helios, its latest server system that bundles several types of AI chips, which is its answer to Nvidia's Vera Rubin NVL72 rack. AI labs and cloud giants using AMD's infrastructure include OpenAI, Meta, Microsoft, Oracle, and Anthropic, with which AMD announced a multibillion-dollar infrastructure partnership on Wednesday.
AMD also used the event to take direct aim at Nvidia, claiming that Helios delivers up to 30% more inference tokens per dollar than Nvidia's Vera Rubin NVL72 rack.
"Every Helios can deliver more performance for the largest models, more capacity for longer context, and the bandwidth to scale across thousands of racks," Su said Thursday at AMD's Advancing AI event.
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Geoff Weiss is a senior reporter on Business Insider’s tech team, where he writes about AI startups and Y Combinator, the intersection of AI and the media industry, and workplace dynamics within top AI labs and chip companies.Previously, Geoff was on the media desk, covering YouTube and Netflix, and themes like the intersection of Hollywood and the creator economy. His work on Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won second and first prize, respectively, at the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the senior editor of Tubefilter and a staff writer at Entrepreneur. He graduated from New York University with a degree in English Literature.He can be reached at [email protected], on Signal @geoffweiss.25, and on LinkedIn. Have a tip? Use a personal email address and a nonwork device; here's our guide to sharing information securely.Selected stories:Nvidia crushed its quarter — and CEO Jensen Huang said in a leaked all-hands that 'the market did not appreciate it'Nvidia will foot the bill for Trump's new visa fees. Here's what CEO Jensen Huang told staff.Massive AI salaries and RTO are fueling a real estate boom in San Francisco: 'It's going to rain money'The AI talent wars are ricocheting across startups. Here's how they're competing with Big Tech.
Artificial Intelligence AI Stocks More Stock Market Data Centers
Foundation Future Industries spolupracuje s AMD na vývoji autonomních humanoidních robotů pro vojenské a průmyslové využití. Firma použije procesory AMD Ryzen AI Embedded X100 Series v robotu Phantom MK-2.
Item 1 of 2 AMD logo is seen in this illustration created on June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
[1/2]AMD logo is seen in this illustration created on June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
July 23 (Reuters) - Eric Trump-backed Foundation Future Industries said on Thursday it is partnering with AMD (AMD.O), opens new tab to use its chips to co-develop autonomous humanoid robots for military and industrial use.
The son of U.S. President Donald Trump has been an investor in the start-up since early this year and serves as chief strategy advisor, the company said.
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The Trump family's investments in several companies have drawn scrutiny, particularly its stakes in defense firms that regularly compete for government contracts, raising concerns about potential conflicts of interest.
Eric Trump and his brother, Donald Trump Jr., have also backed Israeli drone-maker XTEND (JFB.O), opens new tab, Unusual Machines (UMAC.A), opens new tab and Powerus.
Under the deal, whose value was not disclosed, Foundation plans to use AMD Ryzen AI Embedded X100 Series processors — introduced by the chipmaker in January, opens new tab this year — to build the second version of its robot, Phantom MK-2.
The start-up, founded in 2024, said it has deployed its Phantom MK-1 robots to contribute in building more than 24,000 cars in 2025.
In October, the company will open a factory capable of building 5,000 Phantom robots annually, with plans to start building another facility early next year with an annual capacity of 50,000 robots, CEO Sankaet Pathak told Reuters.
Each industrial-use robots, leased to customers, cost about $100,000 per year, Pathak said.
On the defense side, the company is developing robots for materials handling and reconnaissance, which are sold to the government at $300,000 a unit, he added.
Reporting by Aishwarya Jain in Bengaluru; Editing by Vijay Kishore
Our Standards: The Thomson Reuters Trust Principles., opens new tab
This has been an amazing year for Advanced Micro Devices (AMD +2.13%) investors so far, as shares of the semiconductor specialist have jumped by an impressive 144%.
This incredible rally in AMD stock is well deserved, as the company is gradually becoming more influential in the artificial intelligence (AI) chip market. The good news for investors is that AMD's rally could get a nice shot in the arm when the company releases its second-quarter results after the market closes on Aug. 4, following a new development.
Image source: The Motley Fool.
AMD has just scored a big customer for its rack-scale AI server platform It has been just over a year since AMD announced that it will offer a next-generation AI server rack, known as Helios, to hyperscalers and AI companies. This rack-scale system integrates the chip designer's data center graphics processing units (GPUs), Epyc server processors, Pensando networking chips, and enormous amounts of high-bandwidth memory (HBM) to quickly process AI workloads in data centers.
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AMD has already landed a major hyperscaler in the form of Meta Platforms to deploy Helios. And now, the chip designer has just announced that Microsoft will also deploy the Helios rack-scale servers in its Azure data centers "to power frontier model AI inference for Microsoft, its AI customers and support Azure AI services."
Additionally, Microsoft will use two additional Epyc server processors from AMD and increase adoption of Pensando chips to enhance its Azure networking services. AMD notes that it will start shipping Helios to Microsoft and other customers in the second half of 2026.
This is great news for AMD investors ahead of its Q2 earnings report next month. The AI server market is anticipated to grow by nearly 6x between 2024 and 2030, generating $838 billion in revenue by the end of the decade. AMD can capture a larger share of this lucrative space by offering rack-scale systems that leading server manufacturers can deploy.
Moreover, AMD's partnership with Microsoft could help it deliver stronger-than-expected results on Aug. 4.
AMD's guidance could exceed expectations AMD expects a 46% year-over-year increase in Q2 revenue to $11.2 billion. Analysts, however, expect slower year-over-year revenue growth of 35% in Q3 to $12.45 billion. The company could easily exceed that estimate since it is poised to begin sales of the Helios rack-scale systems in the second half of 2026.
This also explains why analysts are estimating AMD's top-line growth to accelerate to 57% in 2027 from an estimated 43% this year. Even better, the company's growth rate is poised to remain robust even in 2028.
Data by YCharts
If AMD's revenue reaches $106.5 billion in 2028 and it trades at even 15 times sales at that time, a discount to its current sales multiple of 22, its market cap could increase to $1.6 billion. That's 80% higher than AMD's current market cap, giving investors a solid reason to buy this AI stock ahead of its quarterly report.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
AMD a Anthropic uzavřely dohodu na dodávky serverů pro AI v hodnotě desítek miliard USD. Anthropic má odebrat čipy Instinct MI450 až 2 gigawaty od první poloviny roku 2027.
Společnosti AMD a Anthropic podepsaly dohodu na dodávky serverů pro umělou inteligenci v hodnotě desítek miliard dolarů. Tento podle krok deníku Wall Street Journal posiluje konkurenční pozici AMD vůči lídrovi trhu Nvidia a zároveň poskytuje startupu Anthropic tolik potřebný výpočetní výkon.
Anthropic podle podmínek dohody odkoupí nejnovější generaci čipů AMD s označením Instinct MI450 v objemu až 2 gigawattů, a to od první poloviny roku 2027. Společnost AMD zároveň po dosažení stanovených milníků v odběru čipů investuje do Anthropicu až 5 mld. USD, což představuje její vůbec první přímý finanční vstup do této AI firmy.
„Velmi jsme usilovali o to, abychom se stali významnou součástí jejich infrastruktury,“ uvedla generální ředitelka AMD Lisa Su a dodala, že inženýrské týmy obou společností již nějakou dobu úzce spolupracují.
Anthropic v rámci nové dohody nakoupí část čipů AMD pro vlastní datová centra a další část kapacity si pronajme prostřednictvím velkých cloudových poskytovatelů či specializovaných neocloudů. Obě firmy aktuálně společně vybírají vhodná datová centra pro umístění těchto čipů, doplnila Su.
Akcie AMD Akcie AMD (AMD) v předburzovní fázi obchodování klesají o 3,16 % na 527,20 USD.
AMD v 1Q FY2026 zvýšila tržby na 10,253 mld. USD, meziročně o 37,85 %, a divize Data Center rostla o 57 % na 5,775 mld. USD.
Upravený zisk na akcii 1,37 USD překonal konsensus 1,2939 USD.
I keep hitting the buy button on AMD (NASDAQ:AMD | AMD Price Prediction) because the projections analysts were sketching a year ago are showing up in the filings, in the customer names, and in the cash flow. Every quarter I tell myself I have enough. Every quarter I add more.
The Thesis I Cannot Shake AMD currently captures just 5% to 7% of global hyperscaler AI accelerator spend, and Wall Street projects that share will expand to 20% to 25% between 2027 and 2028. What convinced me the arithmetic will actually happen is the Helios rack-scale platform, integrating 72 Instinct MI455X GPUs, 6th-Gen EPYC Venice CPUs, and UALink open networking. That turns AMD from a chip vendor into a full-stack system supplier, which is what hyperscalers buy. Multi-gigawatt commitments from Microsoft, Meta, and OpenAI convert a projected share gain into contracted pipeline.
The Receipts Q1 FY2026 gave me three reasons in one filing. Revenue hit $10.253 billion, up 37.85% year over year, with Data Center alone at $5.775 billion, up 57%. Non-GAAP EPS of $1.37 beat the $1.2939 consensus, extending a pattern of revenue beats in all four recent quarters.
Second, the cash is real. Free cash flow reached $2.566 billion, up 252.96% year over year, on top of a full-year FY25 free cash flow of $5.519 billion. Balance sheet: $5.585 billion in cash against a debt/equity ratio of 0.07. That is a fortress underwriting the buildout.
Third, the market Lisa Su is chasing keeps getting larger. On the call, she said “we now expect the server CPU TAM to grow at greater than 35% annually, reaching over $120 billion by 2030,” nearly double the pace outlined months earlier. Q2 guidance calls for roughly $11.2 billion, about 46% year-over-year growth.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
Why Not the Obvious Alternative Readers ask why I do not just own NVIDIA (NASDAQ:NVDA). I own some. I am not adding at these levels because AMD is the share-gain story, and the valuation gap matters. AMD trades at a P/E near 164, but the earnings growth underneath it is net income up 95.06%. As for Intel (NASDAQ:INTC), AMD is taking the business directly. Su noted “our fourth consecutive quarter of record server CPU revenue” with cloud and enterprise each up more than 50%. EPYC cloud instances grew to more than 1,600. Intel is the donor here.
The Risk I Will Not Wave Away The real risk is the valuation itself and China. U.S. export controls on MI308 cost AMD roughly $800 million in Q2 25 charges and $440 million net for FY25. Another round of policy tightening would sting. It has not changed my thesis because the Helios pipeline is North American and European hyperscaler demand, and Su said customer MI450 forecasts are running “above our initial plans that we had planned for 2027”.
Why the Buy Button Stays Live Su told analysts AMD has “a clear path to exceed our long-term financial targets, including delivering more than $20 in EPS over the strategic time frame.” Against a current price of $503.57, that math is the entire argument. Projections stopped being projections the day Meta signed for 6 gigawatts. I am buying the company that delivers them.
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SummaryRecent multi-year partnerships with Meta and OpenAI, each for 6 GW of AI infrastructure, could generate up to $120 billion in Data Center revenue through 2030.AMD's Helios platform integrates CPUs, GPUs, networking, and software, positioning AMD as a more formidable competitor to Nvidia in rack-scale AI systems.Potential shareholder dilution risk exists if up to 320 million warrants from Meta and OpenAI are exercised, representing a possible 19.6% increase in shares outstanding. Getty Images
By Khaveen Jey, CFA, FMVA, Portfolio Manager @ Khaveen Investments & Anthony Goh, Senior Investment Research Analyst @ Khaveen Investments
In our previous analysis, we compared AMD (AMD) with Intel (INTC) and explained
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In the latest close session, Advanced Micro Devices (AMD - Free Report) was up +1.58% at $503.57. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the chipmaker had lost 7.74% over the past month, lagging the Computer and Technology sector's loss of 4.32% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Advanced Micro Devices will be of great interest to investors. The company's earnings report is expected on August 4, 2026. The company is forecasted to report an EPS of $1.6, showcasing a 233.33% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.32 billion, indicating a 47.24% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.3 per share and revenue of $49.29 billion. These totals would mark changes of +75.06% and +42.31%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.05% rise in the Zacks Consensus EPS estimate. Advanced Micro Devices is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 67.95. This signifies a premium in comparison to the average Forward P/E of 22.7 for its industry.
We can also see that AMD currently has a PEG ratio of 1.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 0.89 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Microsoft rozšiřuje partnerství s AMD a nasadí na platformě Azure Helios pro AI inference, nové VM Azure HDv2 a Azure HXv2 s procesory EPYC Venice i DPUs Pensando. AMD začne Helios dodávat zákazníkům ve druhé polovině roku 2026.
Microsoft to ramp AMD Helios™ at scale on Azure to power frontier model inference for Microsoft, its AI customers and Azure AI services. Azure will add two new VMs powered by 6th Gen AMD EPYC™ “Venice” processorsAzure deploys AMD Pensando™ DPUs in AMD AI backend networking infrastructure and select Azure services.The companies are integrating AMD silicon with Azure Boost to scale cloud networking performance across the fleet. SANTA CLARA, Calif., July 20, 2026 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today announced an expanded strategic partnership spanning AMD GPUs, CPUs, networking and software on Microsoft Azure. At the center of this expansion, Microsoft will deploy the AMD Helios Rackscale Solution, to power frontier model AI inference for Microsoft, its AI customers and support Azure AI services. Azure will also add two new AMD EPYC CPU-powered VM series and broaden its deployment of Pensando DPUs to support Azure networking services. AMD will begin shipping Helios to customers, including Microsoft, in the second half of 2026.
AMD Helios combines AMD Instinct™ MI455X GPUs, AMD EPYC™ "Venice" CPUs, Pensando™ networking and ROCm™ software in an open, integrated rackscale platform built for large-scale AI training and inference. The Azure deployment will use Helios for inference workloads spanning frontier models, Azure AI services and customer applications.
“AMD and Microsoft have spent years building high-performance infrastructure together, and today we're extending that partnership across the full stack of AMD AI solutions on Azure,” said Dr. Lisa Su, Chair and CEO, AMD. “Microsoft's new AMD deployments mark an important milestone as we deliver leadership compute solutions to Azure customers and scale the next generation of AI infrastructure together.”
“Customers are looking for AI infrastructure that is optimized for a wide range of workloads, from training and inference to data preparation, search, and reinforcement learning," said Satya Nadella, Chairman and CEO, Microsoft. "Through our collaboration with AMD, we are expanding the Azure infrastructure portfolio with AMD Helios to give customers the performance, scale and choice they need to build and run the next generation of AI applications.”
The collaboration expands access to AMD AI infrastructure across Azure. Frontier model builders can now leverage AMD-powered infrastructure to train and serve large-scale AI models, while enterprise customers can deploy and scale production AI workloads through Azure Foundry Managed Compute.
Azure’s new VM series, Azure HDv2 for agentic AI and data pipelines, and Azure HXv2 for semiconductor design, will be powered by 6th Gen AMD EPYC “Venice” processors. Together, the new VM series broaden Azure’s AMD EPYC portfolio across AI, data and engineering workloads.
The collaboration also extends into the networking layer that connects and scales Azure infrastructure. Building on Microsoft’s broad deployment of AMD Pensando DPUs, the companies are integrating Azure Boost with AMD technologies to improve networking performance, efficiency and connection processing at cloud scale.
As AI demand accelerates, AMD and Microsoft will continue to deliver open, high-performance infrastructure that gives customers flexibility, efficiency and scale to build what's next.
Supporting Resources
Learn more about AMD Instinct acceleratorsLearn more about AMD EPYC processorsLearn more about AMD Pensando networking solutionsLearn more about AMD and Microsoft collaborationConnect with AMD on LinkedInFollow AMD on X About AMD
AMD (NASDAQ: AMD) drives innovation in high-performance and AI computing to solve the world’s most important challenges. Today, AMD technology powers billions of experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. With a broad portfolio of AI-optimized CPUs, GPUs, networking and software, AMD delivers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing. Learn more at www.amd.com.
Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the features, functionality, performance, availability, timing and expected benefits of AMD products and expanded collaboration with Microsoft, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD’s ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, components (such as memory supply), substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees, leases and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.
AMD, the AMD Arrow logo, AMD Instinct, AMD Pensando, AMD ROCm, EPYC and combinations thereof are trademarks of Advanced Micro Devices, Inc. Microsoft, Azure are trademarks or registered trademarks of their respective owners. Other names are for informational purposes only and may be trademarks of their respective owners.
Jefferies uvedla, že Anthropic může být dalším zákazníkem AMD, což zvýšilo pozornost před akcí Advancing AI 2026 ve dnech 22.–23. července. AMD už má potvrzené zákazníky včetně Microsoftu, OpenAI, Meta a Oracle.
The AI infrastructure land grab has a new potential domino. Jefferies analysts flagged Anthropic as a likely next AMD customer announcement, with the chipmaker’s Advancing AI 2026 event set for July 22 to 23. That joins a customer roster reading like a who’s who of AI, forcing a fresh look at where the stock can go.
Our 24/7 Wall St. price target for AMD (NASDAQ:AMD | AMD Price Prediction) is $562.88, pointing to 13.54% upside from the current $495.76. The recommendation is buy, with confidence at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $495.76 24/7 Wall St. Price Target $562.88 Upside 13.54% Recommendation BUY Confidence 90% A Rally That Just Paused AMD is up 131.49% year to date and 209.06% over the past year, but shares have cooled 11.14% in the past week after touching a 52-week high of $584.73.
Q1 2026 delivered: revenue of $10.25 billion, up 37.9% year over year, with non-GAAP EPS of $1.37 beating the $1.29 consensus. Data Center revenue jumped 57% to $5.78 billion, and management guided Q2 revenue to roughly $11.2 billion, or about 46% growth. The July 22 event has retail excited: Reddit sentiment sits at bullish score of 72.
Why Bulls See a Breakout Ahead The bull case rests on customer breadth. Microsoft is confirmed as an MI400 series customer, OpenAI has committed to 6 gigawatts of AMD GPUs, Meta is deploying up to 6 GW of Instinct GPUs starting with custom MI450-based silicon, and Oracle is building a 50,000-GPU Helios supercluster.
Add Anthropic and AMD’s estimate that its AI CPU addressable market exceeds $200 billion starts to feel conservative. In the bull scenario, shares could reach $629.03 within 12 months, a 26.88% return. CEO Lisa Su reinforced that trajectory, noting “customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.”
What Could Go Wrong AMD trades at a trailing P/E of 186 and a forward P/E of 69. Any hiccup at the July event, whether Anthropic deal terms disappoint or MI500 details slip, could reset the multiple.
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Export controls remain a live wire, with MI308 restrictions to China driving roughly $440 million in net FY2025 charges. A CTO exercised and sold 6,000 shares at $556.43 on July 15, though those transactions were executed under a Rule 10b5-1 plan. Our bear scenario puts shares at $434.31, a 12.4% drawdown.
How AMD Compares to NVIDIA and Intel NVIDIA (NASDAQ:NVDA) is the direct benchmark. NVIDIA trades at a P/E of 41, well below AMD’s trailing multiple, backed by Q1 FY2027 revenue of $81.61 billion and Data Center growth of 92% year over year. NVIDIA’s scale makes AMD’s premium multiple defensible only if AMD sustains 45%-plus growth, which the Q2 guide supports.
Intel (NASDAQ:INTC) is the value counterpoint. Intel’s Data Center and AI segment grew 22% to $5.05 billion in Q1 2026, still smaller than AMD’s Data Center line and burdened by a $4.07 billion restructuring charge. The peer set makes our 24/7 Wall St. Price Target reasonable: aggressive versus NVIDIA on multiple, but justified by AMD’s superior GPU customer momentum relative to Intel.
Our View on AMD The 24/7 Wall St. price target of $562.88 and buy rating reflect an unusual convergence: hyperscaler customer wins, accelerating margins, and a 90% confidence score. The thesis strengthens if the July 22 event confirms the Anthropic deal and MI500 roadmap. The thesis weakens if the announcement lacks financial terms or if China export policy tightens further.
Looking further out, here is where our model projects AMD could trade, assuming Data Center growth normalizes toward the mid-teens by decade’s end.
Year 24/7 Wall St. Price Target 2026 $562.88 2027 $635 2028 $695 2029 $728 2030 $759.47 These projections assume AMD executes on the MI450 and MI500 roadmap. Significant upside could come from sovereign AI wins, while trade restrictions or NVIDIA taking share in the MI400 window would trim the base case.
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Broadcom ve fiskálním 2. čtvrtletí zvýšil tržby o 48 % na 22,2 miliardy USD a tržby z AI čipů vyskočily o 143 % na 10,8 miliardy USD. Firma zároveň čeká ve 3. čtvrtletí růst tržeb z AI polovodičů o více než 200 % na 16,0 miliardy USD.
A brutal week for chip stocks ended with the PHLX Semiconductor Index in a bear market, down more than 20% from its June peak. Two of the AI (artificial intelligence) trade's flagship names went down with it. Advanced Micro Devices (AMD 1.03%) now trades about 15% below its high, while Broadcom (AVGO 0.70%) has fallen about 25% from its own.
Both companies, meanwhile, are executing about as well as they ever have. Falling stock prices and accelerating businesses make for a good time to compare the two.
So, which chipmaker deserves new money after the sell-off?
Image source: AMD.
AMD: accelerating, and priced like it AMD's first-quarter results showed a company hitting its stride. Revenue rose 38% year over year to $10.3 billion, led by the data center segment, where revenue climbed 57% to $5.8 billion on strong demand for its EPYC server processors and the continuing ramp of its Instinct AI accelerators. Non-GAAP (adjusted) earnings per share rose 43% to $1.37, and free cash flow hit a quarterly record of $2.6 billion. Even the client business, which sells chips for personal computers, grew 26%. Profitability is moving the right way, too, with the company's adjusted gross margin expanding to 55% from 54% a year earlier.
And the growth is speeding up. Management guided for second-quarter revenue of about $11.2 billion, implying roughly 46% year-over-year growth -- up from 38% in Q1. CEO Lisa Su said customer engagement around the company's upcoming MI450 series accelerators and Helios rack systems is strengthening, with forecasts from leading customers exceeding AMD's initial expectations.
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The problem is the price. At about $500 per share as of this writing, AMD trades at roughly 67 times this year's expected earnings and about 37 times next year's. The stock also pays no dividend.
That's a price that assumes AMD will continue to gain share in AI chips for years to come. It might. But that outcome is largely priced in already.
Broadcom: faster growth, cheaper stock Broadcom's fiscal second quarter (the period ended May 3, 2026) was arguably even stronger. Revenue climbed 48% year over year to $22.2 billion. The star was AI semiconductor revenue (the custom AI accelerators and networking chips it builds for cloud giants), which soared 143% to $10.8 billion. Adjusted net income came in at $12.1 billion, and free cash flow was $10.3 billion, a staggering 46% of revenue.
Additionally, Broadcom pays a quarterly dividend of $0.65 per share, yielding about 0.7% at the stock's current price. AMD offers no comparable income stream.
The outlook is even better.
"The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion," said CEO Hock Tan in the company's fiscal second-quarter earnings release. Total revenue guidance calls for about $29.4 billion, up 84% year over year.
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Broadcom isn't all hypergrowth, though. Its infrastructure software segment, about a third of revenue, grew just 9% year over year. It's a profitable, steady business, but it dilutes the growth rate the chip side is producing. And the custom AI chip business leans on a handful of hyperscale customers, so orders can be lumpy, and a few buyers' decisions carry a lot of weight.
Still, the valuation math is hard to argue with. At about $370 per share, Broadcom trades at roughly 32 times this year's expected earnings and about 19 times next year's, roughly half of AMD's multiple on both counts.
The better buy right now On growth, Broadcom currently has the edge, with guidance calling for 84% revenue growth this quarter against the roughly 46% AMD's outlook implies. On cash, it isn't close. Broadcom generated about four times AMD's quarterly free cash flow, and it pays a dividend while AMD does not. And on price, Broadcom trades at about half AMD's multiple of expected earnings.
Of course, AMD is the purer bet on gaining share in AI accelerators. If the MI450 ramp exceeds forecasts next year, earnings estimates could race higher and make today's multiple look conservative. For investors who want maximum upside to that scenario, AMD is the more explosive stock -- in both directions.
But when the faster-growing business is also the cheaper stock and the stronger cash generator, the decision isn't difficult. I'd buy Broadcom over AMD after this sell-off.
AMD příští týden pořádá Advancing AI 2026 event a trh čeká hlavně na oznámení nového zákazníka, možná Anthropic. Jefferies zároveň vyhlíží podrobnosti o MI500 a vyšší odhad adresovatelného trhu pro AI CPU nad 200 miliard USD.
Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) hosts its Advancing AI 2026 event next week in San Francisco, its first dedicated AI day since June 2025 when it launched its MI350 series GPUs and previewed its Helios rack system.
Jefferies analysts expect AMD to raise its addressable market estimate for AI CPUs above $200 billion, topping the figure Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) (Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)) gave in May. They are also watching for more detail on AMD's next-generation MI500 GPUs and scale-up roadmap, along with any new customer announcements.
New customer announcements have been the biggest swing factor at AMD's past two AI events. The firm's Asia supply chain checks suggest Microsoft Corp (NASDAQ:MSFT) (Microsoft Corp (NASDAQ:MSFT)) is now a customer for AMD's MI400 series GPUs, joining previously disclosed customers OpenAI and Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) (Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB)).
The analysts said expectations center on a potential Anthropic announcement, noting reports that the AI company has been hiring engineers with ROCm experience, which they said suggests Anthropic is preparing to diversify its computing infrastructure.
Jefferies cautioned that deal economics matter more than any headline, noting AMD has already committed 20% of the company to OpenAI and Meta, so future deals would need smaller incentive packages.
A more traditional Anthropic agreement would reinforce confidence in AMD's ability to compete without equity incentives, the analysts said.
Jefferies expects new disclosure on the MI500 series, previewed at CES 2026 as CDNA 6 architecture on an advanced 2nm process with HBM4E memory targeted for 2027, with a claimed 1,000-times AI performance uplift versus an eight-GPU MI300X node.
The analysts expect the MI500 platform to move to a native Ultra Accelerator Link scale-up domain with 256 GPUs per rack, which may require optical interconnects.
Jefferies is watching for confirmation of a co-packaged optics approach and its supplier, noting AMD's investment in Ayar Labs and its work with Astera Labs Inc (NASDAQ:ALAB) on Ultra Accelerator Link and Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) (Broadcom Inc (NASDAQ:AVGO, XETRA:1YD)) on scale-up networking.
Advanced Micro Devices letos více než zdvojnásobila tržní kapitalizaci na zhruba 840 miliard USD. Firma zároveň uvedla, že tržby mají růst tempem 35 % a více ročně po dobu tří až pěti let.
Micron (MU 6.03%) surprised many investors when it reached a $1 trillion market cap in May. Investors may have seen the memory chip opportunity, but few of them anticipated the stock's 700% surge over the past year.
Broadcom (AVGO 4.53%) hit the same milestone in December 2024. These two companies demonstrate a pattern of chipmakers producing tremendous returns amid the AI boom. This trade has already been the source of several trillion-dollar success stories, and Advanced Micro Devices (AMD 6.46%) looks ready to join them.
The AI chipmaker -- which not long ago had acquired the nickname "Advanced Money Destroyer" for its weak stock price performance -- has more than doubled its market cap year to date to around $840 billion. Strengthening fundamentals and a long-term plan have positioned Advanced Micro Devices to thrive in one of the biggest opportunities in tech right now.
Image source: Getty Images.
Analyzing the current data center opportunity AI data centers have been the major catalyst for Advanced Micro Devices. These facilities need the company's AI chips, and the deep backing it has won from big tech companies implies that the gravy train will continue for a while.
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Advanced Micro Devices delivered 38% year-over-year revenue growth in the first quarter, with data center revenue up by 57%. The data center segment makes up more than half of Advanced Micro Devices' total sales, which suggests its revenue acceleration will continue in future quarters.
The data center build-out isn't close to ending. Funding for Meta Platforms' 5-gigawatt Hyperion AI data center, located in Louisiana, recently crossed $50 billion, and it's still not finished. The final cost could end up being a lot higher, and it's only one of many AI data centers being built in the country.
AI processors are key equipment in data centers. In prior stages of the AI build-out, data center operators invested most heavily in GPUs (graphics processing units), which provide the bulk of the processing power required for training and inferencing workloads.
Recently, though, demand for CPUs (central processing units) has been steadily gaining momentum as AI infrastructure providers adjust to the reality that agentic AI will require data centers to be equipped with a much larger proportion of those chips.
Advanced Micro Devices designs both GPUs and CPUs, positioning it to benefit regardless of which chips gain momentum faster. That could help lift it to a $1 trillion valuation and beyond.
Advanced Micro Devices has already guided for multiyear growth Advanced Micro Devices' first-quarter results were the new normal, not a blip. That's the analysts' consensus, based on the strategy that it published in November detailing how it plans to lead the $1 trillion compute market.
CEO Dr. Lisa Su said Advanced Micro Devices is "uniquely positioned to lead the next generation of high-performance and AI computing" while telling investors to expect revenues to grow at a compound annual rate of 35% or higher for the next three to five years. It also anticipates at least 60% compound annual revenue growth for its data center segment during that stretch.
The clamor asserting that there's an AI bubble intensifies any time a natural correction in the sector takes place. However, Advanced Micro Devices' recent earnings and its multiyear projections throw cold water on that thesis. Achieving these types of growth targets could certainly propel AMD to a $1 trillion market cap.
Physical AI can be a major tailwind Today, most of Advanced Micro Devices' revenue comes from chips that are going into AI data centers, so investors may be underappreciating its opportunity in physical AI. Humanoid robots, self-driving vehicles, drones, and smart glasses all need chips like the ones it designs.
As the markets for each of those products expand, Advanced Micro Devices' stock may get carried along for the ride. Fortune Business Insights projects a 50.6% compound annual growth rate for the global humanoid robot market through 2034, projecting a $165.1 billion valuation for it at the end of that period, and a 32.3% rate for the autonomous vehicle market.
The companies leading these markets won't want to test experimental chips early in their industries' cycles. Once these industries get hot, there will be a small window of time when companies will compete for large market shares. Expect that the companies that operate in these industries will prefer to rely on established AI chipmakers like Advanced Micro Devices.
Physical AI may be the stock's next catalyst, but the data center segment is still delivering compelling results. Advanced Micro Devices expects that segment to remain hot for multiple years.
AMD klesá už druhou seanci po sobě, i když analytici dál zvyšují cílové ceny. Investory znepokojuje vysoké ocenění a zpomalující AI rally v polovodičích. Akcie za dvě seance odepsaly zhruba 6 %.
Advanced Micro Devices stock (NASDAQ: AMD) was heading for a second straight decline on Thursday despite bullish Wall Street research.
AMD fell about 3.2% to $513 in premarket trading after dropping 3.5% on Wednesday, putting the stock on course for a two-session fall of about 6%.
The weakness reflected a wider retreat from semiconductor stocks and concern that AMD’s elevated valuation leaves little room for delays in its ambitious AI roadmap.
The Philadelphia Semiconductor Index fell 2.6% on Wednesday and ended about 16.5% below its June 22 high.
The Roundhill Memory ETF dropped roughly 7%, extending its decline from the recent peak to around 30%.
Those moves suggest investors are reducing exposure across the AI-hardware trade rather than responding only to AMD.
TSMC’s decision to raise capital spending after record earnings also revived questions about whether the industry is building capacity faster than customers can eventually monetise it.
Semiconductor shares delivered enormous gains in 2026 as chip shortages, rising prices and artificial-intelligence investment drove earnings forecasts higher.
That success has made the group vulnerable whenever investors question how long that growth can continue.
As per market data, the semiconductor index remained sharply higher for the year even after its July correction, while short interest and exchange-traded fund outflows had risen.
Alexander Lis, chief investment officer at SD Ventures, cautioned that target increases may partly reflect share-price momentum rather than guarantee future returns.
Rosenblatt Securities analyst Kevin Cassidy raised his AMD target to $665 from $490 and retained a Buy rating.
“We recommend owning AMD shares into the earnings report,” Cassidy said, according to TipRanks, citing EPYC server strength and AMD’s advantage following delays to Intel’s Diamond Rapids product.
UBS analyst Timothy Arcuri lifted his target to $700 from $670 and kept a Buy rating.
In a note reported, Arcuri said AMD’s July 22-23 AI event should highlight durable CPU and GPU roadmaps, possible partnerships and a broader data-centre market, while supply-chain checks remained supportive.
KeyBanc analyst John Vinh made the most aggressive call, raising his target to $725 from $530.
Vinh expects AMD’s AI GPU revenue to rise from $16.8 billion in 2026 to $48.5 billion in 2027 as additional server-processor capacity and the MI455 and Helios ramps support growth.
William Blair analyst Sebastien Naji provides the clearest explanation for the sell-off.
He initiated coverage at Market Perform, warning that AMD’s rally had left the shares “priced at a premium to peers with little room for error.”
Naji estimated AMD was trading at 33 times 2027 earnings.
He also questioned how long server-CPU share gains can continue as Arm-based processors, Qualcomm, Nvidia and a recovering Intel increase competition.
In accelerators, AMD must still prove it can take durable share from Nvidia while hyperscalers develop their own chips.
Performance remains strong as first-quarter revenue rose 38% to $10.3 billion, while Data Center revenue jumped 57% to $5.8 billion.
AMD guided for second-quarter revenue of approximately $11.2 billion.
The concern is therefore not weak demand today, but how much success the valuation already assumes.
AMD stock fell about 6% on Wednesday as a broad selloff in semiconductor shares weighed on the sector.
Despite this, multiple Wall Street firms raised their price targets and reaffirmed their bullish long-term views on the stock.
The broader weakness extended across major chipmakers.
Micron Technology dropped 9%, while Lam Research declined more than 4% and Intel fell 5%.
The VanEck Semiconductor ETF (SMH) also lost nearly 3%, reflecting broad pressure on semiconductor stocks.
Separately, ARK Invest reduced its exposure to AMD by selling 9,742 shares through its ARK Innovation ETF (ARKK), a transaction valued at approximately $5.34 million.
The move continued a recent trend of trimming the firm's AMD holdings.
Despite the decline in AMD shares, several brokerages became more optimistic about the company's long-term prospects, citing expanding artificial intelligence opportunities and improving supply chain conditions.
UBS maintained its Buy rating on AMD and increased its 12-month price target to $700 from $670.
The brokerage said AMD is positioned to win additional customers for its AI accelerators and expand its data center semiconductor business.
“Customer-wise, we have always maintained that Amazon will be a major MI450x customer, and we now believe Anthropic might also be on the customer list,” analyst Timothy Arcuri wrote Wednesday to clients.
“Additionally, we could see AMD partnering with [Cerebras Systems] on a fast inference solution … and maybe announcing a deeper and broader push into custom [Application-Specific Integrated Circuits] for the data center.”
UBS also pointed to easing capacity constraints at Taiwan Semiconductor Manufacturing, which provides advanced packaging services for AMD's AI accelerator chips.
“Overall, our supply chain work is very bullish, with significant upticks in [Chip-on-Wafer-on-Substrate ] allocation for C2027,” Arcuri wrote.
The brokerage also identified AMD's "Advancing AI 2026" event, scheduled for July 22-23 in San Francisco, as a potential catalyst for the stock.
KeyBanc also maintained its Overweight rating while raising its price target to $725 from $530.
The firm cited expanding server CPU production capacity and the expected second-half 2026 ramp of AMD's MI455 AI GPU and Helios platform.
KeyBanc expects AMD's server CPU shipments to increase between 15% and 20% this year.
Bank of America raised its price target to $620 from $550, while TD Cowen increased its forecast to $675.
AI demand and China developments remain in focusAnalyst optimism comes after AMD shares more than doubled over the past three months, climbing 112% through Tuesday as demand for AI infrastructure accelerated.
The company has continued gaining market share in server processors while securing agreements with artificial intelligence companies, including OpenAI.
According to LSEG data, 45 of the 55 analysts covering AMD currently rate the stock either Buy or Strong Buy.
Investor sentiment toward semiconductor stocks also received support from Goldman Sachs data cited by The Kobeissi Letter, which showed hedge funds purchased US semiconductor shares last week at the fastest pace in at least three-and-a-half years.
Semiconductor stocks now represent about 10% of total hedge fund exposure, below the nearly 14% peak recorded in May.
AMD also remained in focus after Reuters reported that Zhuhai Hengqin Yunxiang Zhisheng Network Technology, a subsidiary of Chinese cloud computing company Kingsoft, received US approval to use certain AMD AI chips that compete with Nvidia's H200 products.
China remains an important market for AMD, accounting for more than 22% of the company's fiscal 2025 sales, compared with more than 24% in fiscal 2024.
AMD vzrostla o 4,15 % poté, co KeyBanc, Bank of America i TD Cowen zvýšily cílové ceny. KeyBanc navíc letos čeká růst jednotkového objemu o 15 % až 20 % a v roce 2027 o více než 50 %.
The stock outperformed the broader market, with the Nasdaq gaining 1.35% and the S&P 500 rising 0.42%. Technology was the day’s best-performing sector.
Analysts Raise Price ForecastsKeyBanc analyst John Vinh maintained an Overweight rating and raised his price forecast on AMD to $725 from $530.
The firm said AMD has secured additional server CPU capacity, supporting expected unit growth of 15% to 20% this year and more than 50% in 2027.
It also expects the MI455 AI GPUs and Helios platform to ramp in the second half of 2026, forecasting AI GPU revenue of $16.8 billion in 2026 and $48.5 billion in 2027.
KeyBanc added that AMD’s CoWoS advanced packaging supply has increased from 80,000 to 90,000 units this year and could reach 130,000 next year, easing AI supply constraints.
Bank of America analyst Vivek Arya also raised his price forecast to $620 from $550. TD Cowen analyst Joshua Buchalter increased his forecast to $675 on Monday.
Hedge Funds Turn Bullish On Chip StocksThe rally also followed renewed institutional buying.
According to Goldman Sachs data shared by The Kobeissi Letter, hedge funds bought U.S. semiconductor stocks last week at the fastest pace in at least three-and-a-half years.
The buying followed two weeks of heavy selling and suggested investors viewed the recent pullback in chip stocks as largely complete. Semiconductor companies now account for about 10% of total hedge fund exposure, roughly double last year’s level but still below the nearly 14% peak reached in May.
AMD Stock Price Activity: Advanced Micro Devices shares were up 4.15% at $556.58 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
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Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $534.39, demonstrating a -4.21% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.
The chipmaker's stock has climbed by 9.05% in the past month, exceeding the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Advanced Micro Devices will be of great interest to investors. The company's earnings report is expected on August 4, 2026. The company's upcoming EPS is projected at $1.6, signifying a 233.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.28 billion, indicating a 46.79% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and a revenue of $48.98 billion, representing changes of +73.14% and +41.39%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 77.3. Its industry sports an average Forward P/E of 27.79, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can additionally observe that AMD currently boasts a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.04 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
AMD posiluje spolupráci s 5C na výstavbě datacenter nové generace a tím se podle článku přibližuje přímé konkurenci NVIDIA. Dohoda rozšiřuje její roli z dodavatele hardwaru na komplexního hráče v oblasti AI infrastruktury.
It’s not so much that Advanced Micro Devices’NASDAQ: AMD 5C partnership changes the narrative as it strengthens and accelerates it. The deal to collaborate on next-gen data center construction amounts to the missing link in a chain of events that positions the company as a viable, direct competitor to NVIDIA NASDAQ: NVDA.
Advanced Micro Devices Today
AMD
Advanced Micro Devices
$541.38 -16.51 (-2.96%)
As of 12:27 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$141.90▼
$584.73P/E Ratio177.15
Price Target$458.92
Up until now, AMD was a hardware vendor working hard to develop a full AI stack. Now, the company is a full-stack operator that not only produces AI-capable GPUs, the CPUs to drive their operations, and rack-scale server solutions, but also delivers large-scale, hyperscale next-gen data centers for targeted (custom) markets.
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Some takeaways for investors to consider include the newly acquired addressable market share. Advanced Micro Devices can deliver next-gen data centers equipped with the most advanced cooling systems and efficiency ratings on a turnkey basis, in NVIDIA’s home territory. The 5C collaboration also improves long-term visibility, as AMD hardware anchors massive datacenter buildouts already underway in Ohio and Memphis. More importantly, the move sets AMD up as a premier vendor to the neocloud industry, enabling it to turn around datacenter investments quickly—to monetize AI, the goal of so many tech companies today.
Analyst Sentiment Trends Strengthen: AMD to $700 This YearAlthough no revisions or changes in sentiment were triggered by the news, analysts responded well, strengthening conviction in the trend. They view the move as a positive step, strategically positioning the company as a co-architect of AI infrastructure, elevating it from a mere hardware vendor. This makes AMD a viable alternative to NVIDIA, with demand metrics suggesting more than enough room for both to operate. Not only is GPU demand exceeding capacity, but AMD’s product provides advantages that make it well-suited for inference.
Current Price$530.68High Forecast$700.00Average Forecast$458.92Low Forecast$235.00Advanced Micro Devices Stock Forecast Details
As it stands, MarketBeat tracks 44 analysts with current coverage and strong tailwinds within the data. Analyst coverage is increasing; the number of analysts covering AMD is quickly approaching NVIDIA’s 54. Analyst sentiment is also firming, and the consensus price target is trending higher.
The Moderate Buy rating comes with a 68% Buy-side bias, and while the consensus price target lags price action as of mid-July, the trend points to the high end of $700, 25% upside from the early-July highs.
Institutions, the visible reflection of analysts' sentiment, own more than 70% of the stock, have accumulated on a trailing 12-month basis, and ramped buying activity to more than $2 to $1 in early Q3.
Valuation and Execution Remain AMD's Key Risks Amid Hypergrowth ForecastsRisks for AMD remain the same: valuation and execution. Advanced Micro Devices' Q2 rally priced in a significant growth surge, putting the stock at a high 75x the current-year outlook.
However, even in this scenario, the price-to-earnings (P/E) valuation will fall to value levels within four years, and the forward forecasts are far too low despite their robust nature. Forecasts suggest accelerating double-digit hypergrowth over the next two to three years, with revenue reaching $200 billion early in the next decade. Assuming AMD’s AI empire experiences demand comparable to NVIDIA's, its annualized revenue will hit $200 billion within the next few quarters, soon after the MI450 and Helios releases.
Advanced Micro Devices Has a Major Catalyst AheadAMD’s Q2 2026 earnings report could provide several catalysts. Not only is revenue expected to surge by 50%, but growth will likely outperform MarketBeat’s reported consensus, and then there is the guidance. The guidance will likely include news about the MI450 lineup, hyperscale demand, and forecasts that include MI450 sales. Assuming the news confirms strong demand, AMD shares are set to rally and could advance significantly in a very short time.
The technical setup is robust. AMD’s share price advanced approximately 185% in the April-June timeframe, producing strong MACD convergences and extreme peaks on the weekly and monthly charts. The signals reveal a market as strong as it’s ever been, one that is strengthening ahead of its catalyst. In this scenario, new highs are likely and can trigger another wave of capital inflows. Technical targets equate to the rally’s magnitude, approximately $350, putting this stock in the $900 range within months of the fresh high.
AMD’s long-term outlook is equally robust. The company is well-established in other AI-critical markets including embedded, personal computing, and the edge. With this in play, the company has several growth engines to drive revenue in upcoming years, with the AI application age only just beginning. Boiled down, AI applications are the single largest growth driver for the business, affecting demand across segments. The high-volume nature of inference makes it dependent on high-efficiency hardware, a key advantage provided by AMD, with many applications already moving to the edge.
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AMD získala od Meta objednávku na 6 gigawattů kapacity GPU pro AI infrastrukturu, navíc k samostatné dohodě s OpenAI na 6 gigawattů. Tím se z ní stává klíčový dodavatel velkých výstavby AI.
Six gigawatts. That is the total AMD Instinct GPU capacity AMD (NASDAQ:AMD | AMD Price Prediction) will deploy for Meta under a partnership disclosed alongside its most recent earnings, with the first 1-gigawatt tranche powered by a custom MI450-based GPU. For scale reference, one gigawatt is roughly the output of a large nuclear reactor. Meta is committing to power-plant-scale AMD silicon, and it is doing so on top of a separate 6-gigawatt OpenAI agreement already on the books.
The total investment in compute for AMD has been rumored to be around $300 billion, though we’ll see what ultimately gets invested over time. Indeed, that’s the big question mark right now in financial markets.
What It Means Hyperscalers do not sign gigawatt-scale accelerator agreements as hedges. They sign them when they intend to build. That reframes AMD from a challenger chasing NVIDIA (NASDAQ:NVDA) into a co-supplier for the largest AI infrastructure buildouts in the world.
The financial fingerprints are already on the tape. Q1 FY2026 Data Center revenue reached $5.775 billion, up 57% year over year, making it the largest and fastest-growing of AMD’s four segments. Total Q1 revenue landed at $10.253 billion, up 37.9% year over year, beating the $9.91 billion consensus by 3.41%. Non-GAAP EPS came in at $1.37 versus $1.29 expected, driven by non-GAAP gross margins which expanded to 55% (up 170 basis points year over year).
Cash generation is scaling with the mix shift. Q1 free cash flow hit $2.566 billion, up 252.96% year over year, on operating cash flow of $2.955 billion. Net income more than doubled to $1.383 billion, up 95.06%.
Market Reaction AMD shares closed at $517.82 on July 2, 2026, down 4.26% on the day. That single-session dip is noise inside a much larger move. AMD is up 141.79% year to date from $214.16 at the end of 2025, and up 273.82% over the past year. For context, over the same twelve months, NVIDIA is up 24.06%.
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Bull Case The AMD bull case rests on a simple observation – the company’s customer roster now looks like NVIDIA’s. AWS, Google Cloud, Microsoft Azure, and Tencent are expanding 5th Gen EPYC-powered instances. Meta is the lead customer for 6th Gen EPYC (Venice and Verano). Oracle Cloud Infrastructure is standing up a 50,000-GPU AI supercluster using AMD Helios rack design in Q3 2026. Samsung is supplying HBM4 memory for the MI455X.
Guidance points to further acceleration. AMD guided Q2 FY2026 revenue to roughly $11.20 billion, implying about 46% year-over-year growth, with non-GAAP gross margin expanding to about 56%. On the Q1 call, CEO Lisa Su said, “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”
The pressure on rivals is visible in relative performance. Intel (NASDAQ:INTC) still carries a negative EPS of -$0.60 on a trailing basis, with quarterly earnings growth down 71.7% year over year. NVIDIA remains the incumbent, but AMD is winning nameplate capacity commitments rather than trial orders. Analyst posture reflects it: 41 buy or strong buy ratings against 10 holds and zero sells, with a consensus target of $508.31.
Bottom Line Six gigawatts from Meta and another six from OpenAI turn AMD’s AI narrative from optionality into contracted backlog. For long-term holders, the anchor to watch is Data Center revenue, which drove the Q1 beat and underpins Q2 guidance of about $11.20 billion in total revenue.
AMD’s valuation is stretched, with a forward P/E of 77 on a stock up 141.79% year to date leaves little room for execution slips. But, the shipments behind those gigawatts are what the next earnings report will need to prove. That is the number that decides whether the pressure on rivals turns into permanent market share.
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Advanced Micro Devices (NASDAQ: AMD), the world’s second-biggest semiconductor company and one of the best-performing blue-chips in the 2026 stock market, confirmed it would be filing its next earnings report on August 4 in a late Wednesday press release.
The document is likely to prove critical for AMD investors, considering it will come during a period of increased uncertainty regarding the chipmaking industry and the artificial intelligence (AI) boom, and could provide substantial tailwinds to the equity.
Indeed, analysts appear to, on average, be forecasting a substantial rise in earnings per share (EPS) relative to recent quarters, per the data Finbold retrieved from Nasdaq on Thursday, July 9, 2026.
Analysts predict AMD stock Q2 earnings Specifically, after AMD beat the $1.06 prediction for Q1 by announcing an EPS of $1.11, the semiconductor giant is expected to have achieved $1.35 in Q2. If it manages an equal beat to the first three months of 2026, it will have reported $1.41.
AMD stock forecasted and reported EPS. Source: Nasdaq Looking at the recent quarterly filings further reinforces the notion that the August 4 filing will be bullish, considering the company either matched or exceeded expectations in three consecutive reports.
Additionally, AMD itself voiced its optimism regarding the future in its previous call, not only stating it anticipates strong growth to continue, but also to beat analyst revenue expectations of $10.52 billion by achieving $11.2 billion.
Still, it is worth noting that even results above Wall Street consensus might not be as decisive as they appear, with some prominent institutional experts – Gordon Johnson of GLJ Research perhaps being the most notable – opining earlier in 2026 that most targets are deliberately set low enough to guarantee a double beat for some of the most important public firms.
Why Q2 earnings guidance could be most important part of the filing for AMD Elsewhere, the weeks preceding the August 4 filings could prove volatile for AMD stock. June featured a large-scale debate over the costs and benefits of adopting AI, with industry critics such as Ed Zitron suddenly getting significant air time on mainstream media.
While the reported trend of reducing usage of large language models (LLMs) and so-called Agentic AI already cast some doubt on the boom narrative, July allegations that Meta Platforms (NASDAQ: META) is preparing to rent out some of its excess capacity could be even more damaging for semiconductors.
Provided the reports prove correct, it could signal that demand for data center hardware is set for a substantial reduction given the implied oversupply.
Under the circumstances, AMD’s guidance might prove more important than the actual Q2 result due to the recent trends in the space probably not having a bearing on the financials during the three months that ended on June 30.
2026 AMD stock price chart Lastly, signs of uncertainty are already evident in the Advanced Micro Devices stock price chart, considering that, at its latest closing price of $517.14, the equity is nearly 5% below its price in early June.
AMD stock price chart. Source: Google Zooming out reinforces the thesis given that AMD shares managed a remarkable rally since January 2 – the first regular session of 2026 – and remain 131.53% in the green year-to-date (YTD), but have entered an evident slowdown in recent months.
AMD v poslední obchodní seanci klesla o 6,97 % na 513,58 USD, tedy výrazně více než širší trh. Před výsledky se čeká EPS 1,6 USD a tržby 11,27 miliardy USD.
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $513.58, marking a -6.97% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
Coming into today, shares of the chipmaker had gained 12.59% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. On that day, Advanced Micro Devices is projected to report earnings of $1.6 per share, which would represent year-over-year growth of 233.33%. Alongside, our most recent consensus estimate is anticipating revenue of $11.27 billion, indicating a 46.67% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.18 per share and revenue of $48.8 billion, indicating changes of +72.18% and +40.87%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Advanced Micro Devices is currently being traded at a Forward P/E ratio of 76.93. Its industry sports an average Forward P/E of 27.52, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
It's also important to note that AMD currently trades at a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Akcie AMD v úterý klesly téměř o 7 % poté, co Reuters uvedl, že DeepSeek vyvíjí vlastní AI čip. Pokud uspěje, může to omezit závislost na AMD i Nvidii.
Advanced Micro Devices (AMD 6.97%) might be the company behind some of the more dependable microchips on the market, but its stock was wobbly on the second trading day of the week. On reports that yet another artificial intelligence (AI) company aims to develop its own specialty processors for the technology, investors sold AMD stock, leaving it with a loss of almost 7%.
Deep search for a proprietary chip Early Tuesday morning, Reuters reported that Chinese AI developer DeepSeek is planning its own AI chip. If the company is successful, at the very least it would gain independence from its current supplier, AMD, and peer/rival Nvidia. If the chip resonates with other AI businesses, though, it could directly threaten the AMDs and Nvidias of this world.
Image source: Getty Images.
Citing three unidentified "people familiar with the matter," the news agency added that DeepSeek's chip is being designed for inference. This is the stage where an AI model leverages its considerable training to produce responses to user queries.
DeepSeek hasn't officially commented on the Reuters story, and neither AMD nor Nvidia has responded.
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DIY hardware Currently, a great many chips on the market support an earlier phase of AI development, training. The future surely belongs more to hardware capable of powering inference. Even if prohibitive export controls prevent DeepSeek from easily selling its chip abroad, a successful product will likely encourage other developers to go the proprietary route. That will drain business from third-party suppliers.
While the apparent Chinese project is certainly worth monitoring, AI chips are immensely complex, and their development process can be long, intense, and expensive. Given that, DeepSeek's effort might not result in a product at all -- so that rout in AMD stock Tuesday feels a bit overblown.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
There is just no stopping Advanced Micro Devices (AMD +6.74%) right now. Shares of the semiconductor specialist have soared by more than 300% over the past 12 months (as of writing) and recently hit a fresh all-time high. For investors worried they may have missed the boat, here's the good news: There are solid reasons to remain bullish on AMD's outlook, and the stock may still deliver market-beating returns over the medium term. Here is why.
Image source: The Motley Fool.
Accelerating demand AMD's financial results have been strong. In the first quarter, the company's revenue increased by 38% year over year to $10.3 billion. The tech leader's data center segment grew even faster, posting sales of $5.8 billion, up 57% year over year. On the bottom line, AMD's adjusted earnings per share climbed 43% year over year to $1.37. The company did all that while slightly improving its gross and operating margins. The business is booming.
However, the market is even more excited about what's coming. AMD could ride the next wave of the artificial intelligence (AI) industry even more than it did the first. While AMD is a notable player in the GPU (Graphics Processing Unit) market, it is far behind the leader in this niche, Nvidia (NVDA +0.38%). But AMD has a much larger share of the CPU (Central Processing Unit) market. As the AI industry shifts from training to inference, demand for CPUs will soar.
Notably, the rise of agentic AI will be a major tailwind for AMD. AI agents are complex, autonomous systems that can accomplish tasks and work toward goals with limited human involvement. As AMD argues, agentic AI systems require a full stack of CPUs to function properly. As a result, although during the first phase of the AI revolution GPUs were in much higher demand, the CPU-to-GPU ratio will now move closer to 1:1, according to AMD, versus the previous 1:4 or 1:8.
This is great news for AMD, as its EPYC processors are among the market leaders. Meanwhile, the company has gained share in the server CPU market in recent quarters. All of this suggests that AMD's financial results may improve, and it could continue beating the market over the next few years.
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There are some risks Although AMD's prospects look strong, it's worth considering several potential pitfalls. First, AMD is not the only CPU giant that is looking to tap into the soaring demand. The company's longtime rival, Intel (INTC +1.50%), is doing the same. There is also Nvidia which is launching its Vera CPU, specifically to take on the agentic AI revolution. Nvidia may be a formidable competitor, as the Vera CPU is designed as part of an integrated AI computing platform that includes the Rubin GPU.
Since Nvidia remains the runaway leader in GPUs, many companies may choose its CPUs, which are better suited to work with its GPUs. Second, there is always the possibility that the agentic AI boom won't live up to expectations. Nvidia estimates a $200 billion total addressable market for CPUs thanks to agentic AI. AMD projected a compound annual growth rate (CAGR) of more than 35% through 2030, and a total market worth over $120 billion by then. If this demand falls short of expectations, AMD's top-line growth will slow, and the company's shares may decline significantly.
Third, AMD's shares don't exactly look cheap after its run. The company is currently trading at 73.5x forward earnings, compared to an average of 22.2x for information technology stocks. At current levels, the stock may drop sharply at the first sign of trouble. So, should investors still invest in AMD? My view is that it looks attractive even with these caveats. AMD's recent market share gains show that it can thrive despite the competition in an industry that can accommodate multiple winners.
Further, CPU demand has risen so rapidly that AMD's recent 35% CAGR estimate through 2030 is almost double the company's projection six months earlier. Finally, AMD's valuation could become more reasonable as growth accelerates. In fact, the company's forward price/earnings-to-growth ratio -- which accounts for expected earnings growth -- is 1.2. The "undervalued" range typically starts below "1," but AMD's shares don't look drastically overvalued by this metric. And the stock is worth a premium anyway, considering what may lie ahead. In short, AMD's shares are still worth investing in.
AMD 22. a 23. července uspořádá akci Advancing AI, kde má představit nové AI platformy a možná i další zákaznické výhry. Trh čeká hlavně na bližší informace o systému Helios.
The first half of 2026 has been extremely rewarding for Advanced Micro Devices (AMD 4.60%) investors, as shares of the chipmaker have soared by 131% so far this year.
However, AMD stock's momentum has weakened over the past month, as it has dropped nearly 5% amid the recent sell-off in semiconductor stocks. Fears of a stock market bubble amid the artificial intelligence (AI)-fueled gains clocked by tech stocks have been weighing on investors' minds lately. But it would be wrong to call AI a bubble.
The adoption of this technology isn't just driving strong growth for hardware and software companies involved in its proliferation, but also leading to productivity gains for those adopting it. That's why it won't be surprising to see AMD stock stepping on the gas once again in July, especially considering that it may announce some big customer wins during the month at its Advancing AI event.
Image source: Getty Images.
AMD's July event could boost investor confidence AMD will hold its Advancing AI event on July 22 and 23. The company is expected to unveil new AI-focused platforms, how customers are deploying them, and its product roadmap at this event. It is worth noting that AMD held this event in June last year and previewed its rack-scale server architecture called Helios.
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This server platform has been adopted by Meta Platforms, which will begin deploying Helios servers in the second half of 2026. Additionally, AMD management noted on the company's May earnings call that it is seeing strong customer demand for the Helios platform. It said it will share more information about it during the July event.
Assuming AMD manages to attract more customers for Helios, which will go against Nvidia's Vera Rubin chip system, investor confidence in the stock could start improving. It is worth noting that the AMD Helios rack-scale system, powered by the company's MI455X graphics processing unit (GPU), has 432 gigabytes (GB) of high-bandwidth memory (HBM), well above the 288 GB offered by Nvidia's Vera Rubin NVL72 system.
Given that memory is emerging as one of the biggest bottlenecks in AI infrastructure, there is a good chance AMD will indeed win more hyperscaler customers beyond Meta. Meanwhile, in May, Citigroup pointed out that AMD may have added Anthropic to its client list and will announce this new win at the July event.
So, a potential inflow of good news in July could bring AMD out of its rut.
Is it a good time to buy the stock right now? At 173 times trailing earnings and 73 times forward earnings, there is no doubt that AMD is expensive right now. So, investors looking for a value stock should consider looking elsewhere. However, if you have the risk appetite and are looking to add a fast-growing company to your portfolio, buying AMD may look like an attractive option.
After all, its earnings per share are expected to jump by 77% this year to $7.39. Importantly, AMD is anticipated to sustain its solid growth rate over the next couple of years as well.
Data by YCharts
Assuming its earnings per share indeed jump to $18.30 in 2028, and it trades at even 40 times earnings (in line with the tech-focused Nasdaq Composite index), its stock price could reach $732. That's a potential 41% jump from current levels. However, don't be surprised if it delivers stronger-than-expected earnings growth, which will allow it to sustain its premium valuation and deliver bigger gains.
Citigroup is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
AMD představila Versal Premium Gen 2 MoP SoCs s až 32 GB LPDDR5X v jednom pouzdře a šířkou pásma až 288 GB/s. Odběr vzorků má začít do konce roku 2026.
Key Takeaways AMD launched Versal Premium Gen 2 MoP SoCs with up to 32GB LPDDR5X memory in one package.The devices deliver up to 288GB/s bandwidth and cut board space requirements by as much as 60%.Versal Premium Gen 2 MoP devices are expected to begin sampling by the end of 2026. Advanced Micro Devices (AMD - Free Report) recently introduced Versal Premium Gen 2 Memory on Package (MoP) adaptive system-on-chips (SoCs), integrating up to 32GB of LPDDR5X memory into a single package to deliver up to 288GB/s bandwidth while reducing board space requirements by as much as 60%. The new architecture eliminates the complexity of board-level memory design, enabling compact, high-performance systems for AI, networking, aerospace and defense, test and measurement, and professional video applications.
The new devices support PCIe 6.0, CXL 3.1 and LPDDR5X speeds of up to 9,000Mb/s, allowing seamless pairing with AMD EPYC processors and access to CXL memory expansion for data-intensive workloads. The launch of Versal Premium Gen 2 Memory on Package (MoP) adaptive SoCs strengthens AMD’s position in the fast-growing AI infrastructure market by addressing one of the biggest challenges in edge AI, networking, aerospace and defense systems, delivering higher memory bandwidth in compact, power-efficient designs. The latest solution expands AMD’s opportunities beyond hyperscale AI servers into embedded AI, telecom, defense and industrial markets.
The new MoP devices further complement AMD’s EPYC server processors through native PCIe 6.0 and CXL 3.1 connectivity, enabling customers to build scalable, memory-intensive AI platforms. This reinforces AMD’s strategy of providing a broad compute portfolio that delivers the best performance and total cost of ownership across different workloads. This brings a competitive advantage to AMD against the likes of NVIDIA (NVDA - Free Report) and Broadcom ((AVGO - Free Report) ). The EPYC processor is playing a significant role in driving AMD’s data center momentum. CEO Lisa Su noted that first-quarter data center revenues surged 57% year over year, fueled by strong EPYC and Instinct sales, while server CPU revenues climbed more than 50%.
AMD expects server CPU revenues to grow more than 70% in the second quarter, supported by rising adoption of EPYC processors. AMD is on track to launch sixth-gen EPYC Venice later in 2026, with more customers validating platforms than prior generations. AMD now aims to accelerate customer time-to-market by providing a pre-validated in-package memory interface compatible with existing Vivado and Vitis design tools. Versal Premium Gen 2 MoP devices are expected to begin sampling by the end of 2026, while standard Versal Premium Series Gen 2 devices are already shipping.
Tough Competition Hurts AMD’s ProspectsAMD’s prospects suffer from stiff competition. NVIDIA and Broadcom are major competitors in the Data Center space.
NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Data Center revenues reached $75.2 billion in the first quarter of fiscal 2027, up 92% from a year ago and up 21% sequentially, driven by the ramp-up of Blackwell 300 products and demand for InfiniBand, Spectrum-X Ethernet and NVLink solutions. NVIDIA remains AMD's primary rival in GPU-accelerated supercomputing.
Broadcom is benefiting from strong demand for its networking products and custom AI accelerators. In the second quarter of fiscal 2026, AI semiconductor revenues reached a record $10.8 billion, up 143% year over year and above management’s outlook. Broadcom expects AI semiconductor revenues to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year. For fiscal 2026, management expects AI semiconductor revenues of $56 billion, up approximately 180% from fiscal 2025. Broadcom also reiterated that AI semiconductor revenues are expected to exceed $100 billion in fiscal 2027.
AMD’s Share Price Performance, Valuation & EstimatesAMD shares have jumped 142.7% year to date, outperforming the broader Zacks Computer and Technology sector’s growth of 15%.
AMD Stock’s Price Performance
Image Source: Zacks Investment Research
AMD stock is overvalued, with a forward 12-month price/sales of 15.88X compared with the broader sector’s 6.49X. AMD has a Value Score of F.
AMD Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.60 per share, unchanged over the past 30 days, suggesting 233.3% year-over-year growth.
AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wells Fargo zvýšila cílovou cenu AMD na 615 USD z 505 USD a ponechala doporučení Overweight, protože čeká silnou poptávku po serverových CPU díky AI. Akcie přidaly 2 %.
Wells Fargo has increased its price target on Advanced Micro Devices to $615 from $505 while maintaining its Overweight rating, reflecting growing confidence in the company's long-term server CPU business and continued demand driven by artificial intelligence (AI).
AMD shares rose 2% on Tuesday's trading after closing the previous session 3.4% higher at $539.49.
Wells Fargo increased its revenue estimates for AMD's server CPU business over the next three years.
The brokerage now projects server CPU revenue of $16.0 billion in 2026, rising to $20.5 billion in 2027 and $25.0 billion in 2028.
The firm left its data centre GPU revenue estimates unchanged at $15.6 billion for 2026, $40.6 billion for 2027 and $63.0 billion for 2028.
The brokerage also raised its earnings outlook, forecasting earnings per share of $7.15 in 2026, $13.40 in 2027 and $18.75 in 2028.
Wells Fargo based its new price target on a price-to-earnings multiple of 33 times its projected 2028 earnings.
AMD currently trades at a price-to-earnings ratio of 179.
A Wells Fargo analyst team led by Aaron Rakers said the higher price target reflects expectations that demand for server central processing units will remain strong due to continued momentum in agentic AI.
The firm expects AMD's server CPU revenue to increase 68% in 2026.
It also forecasts server CPU sales growth of between 22% and 28% during 2027 and 2028.
Based on Monday's closing price, the revised target implies approximately 14% upside for the stock.
AMD recently said production of its sixth-generation 2nm EPYC Venice server processors began ramping in late May, with volume production expected to continue through the second half of 2026.
The company said more customers are validating and ramping the Venice platform than any previous EPYC generation.
AMD also raised its estimate for the server CPU total addressable market to $120 billion by 2030 during the previous quarter.
The company added that its next-generation 2nm EPYC Verano processors are expected to launch in 2027, with a focus on delivering AI performance per dollar and per watt.
AMD also announced its acquisition of MEXT, a company specialising in AI-driven memory optimisation technology.
The acquisition is intended to strengthen AMD's AI portfolio by improving performance and lowering the total cost of ownership for customers operating in cloud and enterprise environments where memory constraints are a challenge.
Separately, AMD participated in the Series B funding round for cloud computing startup TensorWave, which closed at a valuation of $1.55 billion.
The investment supports TensorWave's plans to expand its infrastructure using AMD hardware and software and further strengthens AMD's position in the data centre ecosystem.
Several brokerages have recently revised their outlook on AMD.
Cantor Fitzgerald raised its price target to $700 while maintaining an Overweight rating, citing continued momentum in the compute market.
UBS increased its target price to $670, pointing to gains in AMD's server CPU market share.
Meanwhile, Wolfe Research reiterated its Outperform rating with a $450 price target, highlighting AMD's progress in artificial intelligence and graphics processing units.
Analytici zvyšují cílové ceny akcií AMD, protože už nevidí jen příběh GPU, ale rostoucí poptávku po CPU v agentic AI. UBS zvedla cíl na 670 USD a odhaduje tržby serverových CPU AMD na 50 miliard USD do roku 2030.
Advanced Micro Devices NASDAQ:AMD stock has surged more than 130% this year, but Wall Street is still chasing the stock higher.
In June alone, Barclays, UBS, Mizuho and Bernstein all raised their price targets on the chipmaker as analysts are no longer treating AMD as just a second-place GPU challenger to Nvidia.
They are increasingly arguing that CPUs are becoming an AI story and the driver is agentic AI, or AI systems that do more than answer one prompt.
Barclays was one of the first major firms to put a bigger number on the CPU opportunity.
Analyst Tom O’Malley raised his AMD price target to $665 from $500 and kept an Overweight rating.
His core argument was that “CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI,” adding that AMD is “best positioned to benefit from this transition”.
The CPU-to-GPU ratio simply means how many central processors are needed for every graphics processor inside AI systems.
Early AI spending was dominated by GPUs because training large models required enormous parallel computing power.
Agentic AI changes the mix because it needs more coordination, routing and software execution around those GPUs.
O’Malley’s model sees the standalone server CPU market approaching $200 billion by 2030.
UBS pushed the argument even further.
Analyst Timothy Arcuri raised his AMD target to $670 from $455 and kept a Buy rating.
That now stands above Barclays’ $665 call and makes UBS one of the most bullish voices on the stock.
The firm said it was “incrementally more constructive” on AMD as standalone CPU racks gain traction.
In plain English, UBS thinks customers are starting to buy CPU-heavy systems for AI workloads that do not rely only on GPU clusters.
That matters because AMD’s CPU business has often been overshadowed by its Instinct GPU ramp.
Investors are watching whether AMD can become a credible second source to Nvidia in AI accelerators. UBS is saying another part of the story may be hiding in plain sight: server CPUs.
Arcuri lifted his 2030 AMD server CPU revenue forecast to $50 billion from $41 billion.
Mizuho and Bernstein added a second layer to the bull case: scarcity.
Mizuho raised its AMD target to $615 from $515 and kept an Outperform rating, citing strong demand linked to agentic AI.
The firm also flagged that CPU and memory suppliers could remain supply-constrained into 2027.
That turns the story from pure demand into a supply-side argument.
If companies need more CPUs for AI workloads, and supply remains tight, pricing and revenue assumptions may have room to move higher.
Bernstein also raised its AMD target, lifting it to $600 from $525 while maintaining an Outperform rating.
The firm increased its 2030 server CPU market estimate to $223 billion from $137 billion, reflecting a much larger opportunity tied to agentic AI.
The caveat is valuation, as AMD’s average Wall Street price target still sits below where the stock recently traded, which means shares have already run ahead of broad consensus.
The next real tests are AMD’s Advancing AI event in July and Q2 earnings in early August.
AMD nyní pohání 191 systémů v žebříčku TOP500, včetně čtyř z deseti nejrychlejších superpočítačů. Tržby datových center v 1. čtvrtletí vzrostly o 57 % díky EPYC a Instinct.
Key Takeaways AMD powers 191 TOP500 systems, including four of the world's 10 fastest supercomputers.Data center revenues rose 57% in Q1, fueled by strong EPYC and Instinct product sales. AMD shares have jumped 142.7% year to date, beating the tech sector's 15% gain. Advanced Micro Devices (AMD - Free Report) EPYC CPUs and Instinct GPUs now power four of the world's 10 fastest supercomputers and four of the 10 most energy-efficient systems, underscoring its growing presence in high-performance computing (HPC). The company powers 191 systems on the latest TOP500 list, up 11% year over year, while 41% of the newly added systems use AMD technology.
The achievement aligns with AMD's accelerating data center momentum, which management believes will underpin the company's next phase of AI-driven growth. AI is driving demand not only for AMD’s GPUs but also for high-performance CPUs that orchestrate inference and emerging agentic AI workloads. CEO Lisa Su noted that first-quarter data center revenues surged 57% year over year, fueled by strong EPYC and Instinct sales, while server CPU revenues climbed more than 50%.
AMD expects server CPU revenues to grow more than 70% in the second quarter, supported by rising adoption of EPYC processors. AMD is on track to launch sixth-gen EPYC Venice later in 2026, with more customers validating platforms than prior generations. Management also raised its view of the server CPU market to greater than 35% annual growth, reaching over $120 billion by 2030.
At the same time, expanding deployments of Instinct GPUs and Helios rack-scale systems position AMD to capitalize on large-scale AI infrastructure investments and drive long-term data center growth. Meta plans to deploy up to 6 gigawatts of Instinct GPUs, with the first 1-gigawatt deployment powered by a custom MI450-based GPU. AMD management continues to target scaling data center AI revenues to tens of billions annually in 2027.
Tough Competition Hurts AMD’s ProspectsAMD’s prospects suffer from stiff competition. NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) are major competitors in the Data Center space.
NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Data Center revenues reached $75.2 billion in the first quarter of fiscal 2027, up 92% from a year ago and up 21% sequentially, driven by the ramp-up of Blackwell 300 products and demand for InfiniBand, Spectrum-X Ethernet and NVLink solutions. NVIDIA remains AMD's primary rival in GPU-accelerated supercomputing.
Broadcom is benefiting from strong demand for its networking products and custom AI accelerators. In the second quarter of fiscal 2026, AI semiconductor revenues reached a record $10.8 billion, up 143% year over year and above management’s outlook. Broadcom expects AI semiconductor revenue to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year. For fiscal 2026, management expects AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 2025. Broadcom also reiterated that AI semiconductor revenue is expected to exceed $100 billion in fiscal 2027.
AMD’s Share Price Performance, Valuation & EstimatesAMD shares have jumped 142.7% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 15%.
AMD Stock’s Price Performance
Image Source: Zacks Investment Research
AMD stock is overvalued, with a forward 12-month price/sales of 14.3X compared with the broader sector’s 6.46X. AMD has a Value Score of F.
AMD's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.60 per share, unchanged over the past 30 days, suggesting 233.3% year-over-year growth.
AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
