AMD Could Significantly Raise Its AI Projections for 2028 Today: Implications for AMD Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 11 2025
0mins
Should l Buy NVDA?
Source: TipRanks
AMD's Financial Analyst Day: AMD is entering its Financial Analyst Day with strong momentum, having posted better-than-expected earnings and raised guidance, particularly in response to increasing AI demand. CEO Lisa Su indicated potential growth in CPU buildouts and hinted at revising the $500 billion AI data-center forecast for 2028.
Investor Expectations: Investors are looking for AMD to translate AI optimism into tangible results, with a focus on updates regarding the company's long-term growth plan, manufacturing capabilities, and customer adoption. Clarity on how AMD's GPU and CPU businesses will meet training and inference workload demands is crucial.
Partnership with OpenAI: AMD's long-term supply agreement with OpenAI, which includes a commitment for six gigawatts of GPU capacity, provides investors with a clear timeline for future AI revenue and demonstrates AMD's competitive position in the AI market.
Analyst Sentiment: Wall Street analysts maintain a positive outlook on AMD, with a consensus rating of Moderate Buy. The average 12-month price target for AMD is $278.09, indicating a potential upside, but the company must deliver on forecasts and execution to sustain its stock rally.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Concentration Analysis: RBC Wealth Management's Rob Sluymer highlights that the concentration of mega-cap tech stocks has significantly increased over the past few years, leading to investors being overweight in these stocks, which have now declined about 7% year-to-date.
- Nvidia Earnings Preview: Nvidia is set to report its fourth-quarter earnings on February 25, and Sluymer believes this will serve as a crucial market indicator; if the results fall short of expectations, it could trigger a larger correction in tech stocks.
- Investor Sentiment Shift: As attention on tech stocks rises, Sluymer notes that some funds are rotating out of these high-valuation stocks into other sectors, a typical behavior in times of high market concentration.
- Future Market Outlook: Should Nvidia's earnings report disappoint, it may lead to a decline in market confidence in tech stocks, potentially resulting in a broader market correction that could impact overall investment strategies.
See More
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- Massive Market Opportunity: Nvidia has negotiated a deal with the U.S. government to resume GPU sales to China, with CEO Jensen Huang estimating the Chinese market could generate up to $50 billion annually, significantly boosting the company's performance.
- Sales Recovery Expectations: Before the ban, Nvidia projected $8 billion in sales from China for Q2 FY 2025; if sales return to similar levels, GPU sales could exceed $30 billion, presenting substantial growth potential.
- Revenue Growth Forecast: Wall Street anticipates Nvidia's revenue will reach $326 billion for FY 2027, but given the surge in AI computing spending, actual revenue could hit $350 billion, further enhancing market confidence.
- Strong Profitability: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, it could generate $196 billion in profits, and with a reasonable 40x earnings valuation, the stock price could rise to $322, indicating a compelling investment opportunity.
See More
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- Market Share Growth: Alphabet's Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT's 27% share by 2025, demonstrating its competitive edge and market leadership in the AI sector.
- Strong Financial Performance: In 2025, Alphabet generated $402.8 billion in revenue, a 15% increase year-over-year, with operating income nearing $130 billion and an operating margin of 32%, indicating robust profitability amid ongoing growth.
- Capital Expenditure Plans: Alphabet anticipates capital expenditures of $175-$185 billion for 2026, exceeding analyst expectations; however, with $30.7 billion in cash reserves and strong profitability, the company is well-positioned to support its data center expansion.
- Long-Term Debt Financing: Alphabet aims to raise $20 billion through the issuance of 100-year bonds, and despite its long-term debt of $46.5 billion, the company's diversified revenue streams and strong cash flow provide a solid financial foundation for taking on additional debt.
See More
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- Surge in Market Spending: Five companies have committed to spending $700 billion on AI infrastructure in 2023, with projections of data center capital expenditures reaching $1.4 trillion by 2030, indicating a strong investment appetite for AI technologies that could drive stock prices higher.
- Nvidia's Market Dominance: Nvidia holds approximately 90% market share in the GPU space, leveraging its early promotion of the CUDA software platform to become the dominant player in AI model training, which is expected to sustain its competitive edge in the market.
- Growth Opportunities for AMD: While AMD may not surpass Nvidia, capturing a share in the AI inference market could significantly enhance its market position, especially with a multi-year deal with OpenAI valued at around $200 billion, further solidifying its role in the AI sector.
- Advantage of CPU and GPU Integration: AMD's leadership in the data center CPU market, combined with its ability to integrate GPUs and CPUs, may provide a competitive advantage for future growth, particularly against the backdrop of surging AI infrastructure spending.
See More
Investment Opportunities Amid Market Weakness
- Microsoft's Value Rebound: Microsoft's operating profit valuation is nearing its lowest level outside of the 2023 sell-off, and despite recent weakness, its strong growth in the latest earnings report highlights a rare buying opportunity for investors.
- Trade Desk's Slowing Growth: The Trade Desk reported an 18% year-over-year growth in Q3, facing challenges due to reduced political ad spending; however, with a projected 17% revenue growth for 2026, its current low valuation presents a compelling entry point for investors.
- Nvidia's Undervalued Stock: Nvidia trades at a mere 24 times forward earnings, despite a projected 64% growth in FY 2027, and with global data center capital expenditures potentially reaching $3 trillion to $4 trillion by 2030, investors should seize this undervalued opportunity.
- Sustained AI Spending Growth: As AI spending is expected to continue increasing over the next few years, Nvidia stands out as a must-buy stock in the current market environment, making it essential for investors not to miss this opportunity.
See More
Microsoft Stock Hits Low Valuation Amid Market Weakness
- Microsoft Valuation Drop: Microsoft's price-to-earnings ratio has fallen to its lowest level outside of the 2023 sell-off, while still maintaining a dominant industry position, and recent earnings reports indicate growth potential, making this a rare buying opportunity for investors.
- Ad Platform Challenges: The Trade Desk reported an 18% year-over-year growth in Q3, but faced headwinds from reduced political ad spending, with a projected 17% revenue growth for 2026, indicating its long-term growth potential remains intact.
- Nvidia Investment Opportunity: Nvidia's stock is currently trading at a mere 24 times forward earnings, despite being projected to grow at a 64% pace in FY 2027, highlighting its investment value amid ongoing increases in AI spending.
- Market Rebound Potential: The recent weakness in the stock market has opened up buying opportunities for investors, particularly in stocks like Microsoft, The Trade Desk, and Nvidia, which could yield outsized returns in the future, prompting investors to act swiftly to capitalize on these opportunities.
See More
