AMD earnings beat the Street. Here's what analysts are saying
Advanced Micro Devices ‘ third-quarter financial results beat expectations, inspiring more confidence from Wall Street. The semiconductor firm posted adjusted earnings of $2.09 per share, topping the $1.95 expected by analysts polled by LSEG. Revenue came in at $13.38 billion, well above the Street’s $13.09 billion consensus estimate. AMD CEO Lisa Su also told investors on Tuesday that the company’s server revenue is expected to double in 2027, while its data center artificial intelligence growth is poised to accelerate even faster than AMD had forecasted three months ago. Shares of AMD popped 4% in premarket trading, in what would be a welcome bounce. The stock has plunged roughly 24% over the past month due to investors’ concerns about the outsized spending linked to the AI boom and the sustainability of its buildout. AMD 1M mountain Shares of AMD are down about 24% over the past month. Several shops on the Street expressed confidence that the company’s expectations for stronger AI-linked revenue could offset softness in its PC vertical. AMD demonstrated “Strength in [its] data center [vertical], with the biggest upward revision from server [central processing units], [which] allows AMD to power through weakness in PCs,” Morgan Stanley analyst Joseph Moore wrote. “AMD continues to take advantage of strong server market conditions to gain meaningful share despite tight supply chains.” Moore raised his price target on the stock to $550 from $510, suggesting nearly 15% upside from Tuesday’s close. To be sure, he reiterated his equal weight rating on AMD. Here’s what other analysts are saying about AMD. Goldman Sachs: Buy, $675 The bank trimmed its price target from $700. “We expect the stock to trade higher following stronger results and guidance which we believe supports our bullish revenue growth outlook for AMD through 2027. We believe investor expectations had been lowered significantly following Intel’s weak guidance last week, despite a constructive view on AMD’s overall momentum. Management delivered very strong Datacenter segment growth in the quarter across both server [central processing units] and [graphics processing units] – and the company has line of sight to over 80% revenue growth at the company level in 2027 despite headwinds in the PC market. We also believe AMD’s gross margin guidance of 55% was particularly encouraging in light of the very strong [central processing unit] ramp in 4Q – and we expect the company to hold these margin levels as server [central processing unit] tailwinds offset headwinds from the [graphics processing unit] ramp. We reiterate our Buy rating on AMD, as we see the company well positioned to capture an increasing share of overall compute market, driven by an already strong presence in the [central processing unit] market and a broadening aperture of key customers in the AI accelerator market.” Barclays: Overweight, $665 “The story is similar in 2027 with [data centers] growing well above 100%…With total revenue expected to grow at least 80% (higher with additional supply), Client becomes less relevant at < 10% of sales by [the second half of 2027], yet AMD is keeping pricing amidst a 1H oversupply. [Gross margins] slightly below Street in September and the guide but not surprising considering the strong ramp of [data center] AI business…AMD remains our favorite idea in the group as the [central processing unit] and [graphics processing unit] businesses accelerate in tandem.” JPMorgan: Neutral, $575 The bank’s Harlan Sur hiked his price target on AMD to $575 from $550, which implies about 19% upside from the stock’s closing price on Tuesday. “Advanced Micro Devices (AMD) delivered a strong set of 3Q26 results, with an even stronger out-quarter guide that came in ahead of both consensus expectations and the buyside estimates we heard coming into the print. The team went one step further and provided a strong 80%+ total revenue growth outlook for CY27 (Street was modeling ~75% growth off a lower CY26 number before the call), driven by > 2x growth in its Data Center (DC) business and continued growth in Embedded. The team is benefitting from continued strong AI infrastructure spending dynamics, the ramp of its MI455X “Helios” rackscale AI compute platform, and strong agentic-driven server [central processing unit] demand… All told, we remain impressed with the company’s execution.” Citi: Buy, $800 “We maintain AMD as our top Buy-rated large cap growth compute semis pick post ‘beat and raise’ results. Management now sees Data Center AI as the largest business within the company to grow > 100% with overall revenue growth of 80% in 2027 and continues to cite supply availability rather than customer demand as the primary constraint. With AI business reaching escape velocity, investor focus shifts from proving AI competitiveness to executing a multiyear ramp centered on MI450/MI455, Helios, and Venice with significant operating leverage as the business scales.” Wells Fargo, Overweight, $650 Analyst Joe Quatrochi lowered his price target on shares to $650 from $700, implying 34% upside from Tuesday’s close. “We think AMD’s above-consensus 2027 rev. outlook, driven by a very strong data center ramp, and backed by solid supply chain execution overshadows expected Client weakness & should catalyze shares higher.” UBS: Buy, $700 Analyst Timothy Arcuri dropped his price target to $700 from $730. The new target is nearly 45% above AMD’s closing level on Tuesday. “AMD reported solid numbers and guided about in-line w/ our model – and better than feared post INTC’s guide down – as server [central processing unit] upside is more than offsetting client downside. On top of this, AMD walked up C2027 guidance to a range that is roughly consistent with our model but well north of Street numbers as it is (we think) in a better place supply-wise than INTC, both in terms of wafers and multi-sourced substrate supply. On top of a superior roadmap, this supply advantage is proving out with this guidance and should not be under-estimated going forward as both client and server are on N2 (as opposed to INTC’s different nodes) and recent substrate investments are finally starting to pay off.”
