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Wall Street has not been shy about backing Advanced Micro Devices (AMD) lately, and two prominent analysts have just added even more fuel to the fire. Rosenblatt analyst Kevin Cassidy raised his price target on AMD stock ahead of the company's Advancing Artificial Intelligence (AI) event on Wednesday, July 22 and Thursday, July 23, calling it his firm's top semiconductor pick.
Cassidy believes Advanced Micro’s momentum has plenty of room to run. He expects revenue from Extended Performance Yield Computing (EPYC) server CPUs to surge more than 70% year-over-year (YOY) while generating margins comfortably above the company average.
He also sees Advanced Micro’s upcoming Venice chip grabbing the spotlight at the premium end of the market because Intel Corporation’s (INTC) competing Diamond Rapids processor has run into delays.
Additionally, UBS Group AG (UBS) analyst Timothy Arcuri came away feeling optimistic. He expects the company's AI Day to reveal stronger CPU and GPU roadmaps, fresh AI partnerships, and a growing list of data center customers. His supply chain checks also paint an encouraging picture, suggesting that the current momentum could stay intact through 2027.
The timing could hardly be better. Microsoft Corporation (MSFT) stepped into the picture just as investor enthusiasm for AMD stock was already gathering pace. Its shares climbed 1.6% on Monday, July 20, after the company announced that Microsoft will deploy its upcoming Helios rack-scale AI platform across Azure cloud services.
And, Helios is scheduled to reach Meta Platforms (META) and Oracle Corporation (ORCL) later this year, giving Advanced Micro yet another vote of confidence from some of the biggest names in cloud computing.
All of this lands just ahead of AMD's two-day Advancing AI event, which begins on Wednesday. With so many catalysts lining up at once, the obvious question is whether AMD stock can continue to strengthen.
About Advanced Micro Stock
Advanced Micro Devices has come a long way since opening its doors in 1969. Headquartered in Santa Clara, California, the company has transformed itself into one of the world's leading semiconductor designers by building high-performance Ryzen and EPYC CPUs, Radeon graphics processors, and Instinct AI accelerators.
The relentless focus on chip innovation has placed Advanced Micro right at the center of today's AI and cloud computing boom. The company now commands a market cap of $821.1 billion while continuing to challenge its rivals across several of the industry's fastest-growing markets through both technological advances and strategic partnerships.
Investors have not missed the story. Advanced Micro’s shares have soared 244.7% over the past 52 weeks while the stock has gained 152.7% since the start of the year alone. Even over the last three months, the shares rallied another 90.2%, proving that momentum has remained firmly on AMD's side.
Of course, every silver lining has a cloud. AMD’s valuation has become much richer after such a powerful run. The stock now trades at 67.75 times forward adjusted price-to-earnings and 16.54 times sales. Both valuation multiples sit comfortably above the industry average as well as the company's own five-year historical averages, signaling a premium.
Advanced Micro Surpasses Q1 Earnings
The company reported its Q1 FY2026 results on May 5 and comfortably beat Wall Street's expectations on both revenue and earnings. Revenue climbed 37.8% YOY to $10.3 billion, topping analysts' estimate of $9.9 billion. Adjusted EPS also grew 42.7% from the year-ago value to $1.37, and ahead of the Street's forecast of $1.29.
The data center business once again did the heavy lifting, although demand remained healthy across every operating segment. A sharp increase in AI infrastructure spending pushed data center revenue up 57% YOY to $5.8 billion. Strong sales of EPYC, CPUs and Instinct GPUs powered much of that growth.
Also, the company turned in another solid quarter on the profitability front. Non-GAAP operating income rose 42.8% from the year-ago period to $2.5 billion, while non-GAAP net income increased 44.6% YOY to $2.3 billion.
The momentum carried through to cash generation as well. Adjusted EBITDA climbed 40.5% from a year earlier to $2.7 billion, while free cash flow skyrocketed 253% from the prior year's quarter to $2.6 billion. AMD kept its balance sheet on firm footing. Cash and cash equivalents edged up to $5.6 billion at the end of the quarter from $5.5 billion on Dec. 27, 2025.
Management believes the runway remains wide open. The company identified inferencing and agentic AI as two major drivers of future demand for high-performance CPUs and accelerators. It expects server growth to gather momentum as production ramps up to meet rising customer demand.
The confidence showed up in AMD's guidance. Management expects Q2 FY2026 revenue to reach approximately $11.2 billion, with a possible variation of $300 million in either direction. The midpoint of that outlook indicates roughly 46% year-over-year growth and about 9% sequential growth.
Wall Street appears just as optimistic. Analysts expect Q2 FY2026 EPS to jump 400% YOY to $1.35. Full-year FY2026 EPS is projected to reach $6.25, representing 91.1% growth from the previous year. Looking even further ahead, FY2027 EPS is expected to climb to $11.56, marking another 85% increase from the prior year.
What Do Analysts Expect for Advanced Micro Stock?
Analysts have largely stayed in Advanced Micro’s corner despite the stock's massive rally. Jefferies analyst Blayne Curtis rates the stock a “Buy” and carries a bullish $615 price target. Curtis believes customer announcements will be "the biggest swing factor" as Advanced Micro begins its AI event in San Francisco.
Cassidy also became more bullish ahead of the event. The Rosenblatt analyst raised his price target to $665 from $490 while maintaining his “Buy” rating. UBS analyst Timothy Arcuri also increased his target to $700 from $670 and reiterated his “Buy” rating.
The broader analyst community has anchored AMD stock with an overall "Strong Buy" rating. Among the 45 analysts covering AMD, 35 recommend a “Strong Buy,” two assign a “Moderate Buy” rating, and eight stick with “Hold.”
To that end, the average price target of $543.83 represents a marginal downside from the current price. Meanwhile, the Street-High target of $755 suggests a gain of 38.5% from the current levels.
On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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