Key Takeaways
Advanced Micro Devices (AMD) has shown remarkable performance over the past 20 years, with its stock price recently rising by 32%, achieving gains over 11 consecutive trading days, marking the longest winning streak since 2005, according to Dow Jones Market Data.
In pre-market trading on Thursday, AMD's stock price rose another 0.3%, poised for a 12th consecutive day of gains.
Overall, AMD has delivered a return of 192% over the past 12 months. The stock has increased by 21% just in 2025. This trend is attributed to the strong overall market performance and a recovery in investor confidence, particularly driven by events related to the ceasefire in Iran.
Before Thursday's market open, the performance of the entire chip industry appeared mixed. Nvidia's stock fell, Intel's rose, while Marvell remained stable.
Bernstein Raises Price Target, Highlights Meta Collaboration
Bernstein Research has raised AMD's price target from $235 to $265, while reiterating its “Market Perform” rating. At the time of this upgrade, AMD's stock was trading around $258, close to its 52-week high of $267.08.
The firm adjusted its financial model to reflect a more optimistic outlook for the server market while moderately lowering expectations for the PC market. Bernstein anticipates that revenue from EPYC CPUs will grow by approximately 50% year-over-year by 2026.
For the first quarter of 2026, Bernstein expects revenue to reach $9.9 billion, with a diluted earnings per share of $1.27. The full-year revenue forecast for 2026 is $45.8 billion, with earnings per share of $6.48, slightly below Wall Street's consensus expectations of $47 billion and $6.74.
The outlook for 2027 shows a significant upward revision.
Bernstein's forecast for 2027 has changed the most, expecting revenue to reach $76.7 billion and earnings per share of $13.23, a substantial increase from previous estimates of $56.7 billion and $9.25, and significantly higher than the market consensus of $67.5 billion.
This major upward revision is primarily due to the AI collaboration with Meta and an optimistic outlook for the server market.
However, Bernstein also noted that the market consensus for PCs in 2026 seems overly optimistic, which could put pressure on short-term performance.
Other Wall Street firms also maintain an optimistic stance. Erste Group upgraded AMD's rating from “Hold” to “Buy,” emphasizing its growth momentum in data centers and improving profit margins. Aletheia Capital maintained a “Buy” rating, pointing out AMD's ongoing expansion in AI infrastructure.
AMD is set to release its quarterly earnings report on May 5. Guidance provided earlier by management indicates that revenue for the first quarter of 2026 is expected to grow by 32% year-over-year, primarily driven by sales of data center CPUs and GPUs.
Current valuations show that InvestingPro's fair value analysis indicates AMD's stock price is above its intrinsic value; nevertheless, the market remains optimistic about its prospects.