AMD's Q1 Earnings Preview Highlights Key Growth Areas
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AMD?
Source: seekingalpha
- Data Center Growth: Analyst Jeff Pu reiterated his Buy rating on AMD and raised his price target to $465, expecting the company's data center CPU business to grow by 55% and 48% YoY in 2026 and 2027, respectively, indicating a strong position in the rapidly expanding AI sector.
- MI 455 AI Accelerator Progress: Pu noted that AMD's upcoming MI 455 AI accelerator is expected to start shipping in Q3, with demand from multi-GW customers like OpenAI, Meta, and Anthropic anticipated to remain strong into 2027 and 2028.
- Competition with Nvidia: While the MI 455 has not yet shipped, there is significant anticipation regarding the upcoming MI 550's comparison to Nvidia's Rubin Ultra line, with Pu suggesting that the MI 500 remains in development for a 4-die packaging design, enhancing AMD's competitive edge.
- Potential Partnership Announcement: There may be an announcement regarding a partnership with Anthropic, as recent job listings indicate the company is seeking a research engineer with ROCm expertise, suggesting a deepening collaboration that could open new business opportunities for AMD.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 421.390
Low
210.00
Averages
289.13
High
377.00
Current: 421.390
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
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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