Key Takeaways
- Susquehanna increased AMD’s price target from $300 to $375 while maintaining a Positive rating
- Analyst Christopher Rolland anticipates robust Q1 performance fueled by server CPU strength and MI350 AI chip traction
- Major 6GW hardware deals with OpenAI and Meta expected to begin shipping in 2H26
- AMD’s Q1 2026 earnings scheduled for May 5; Wall Street forecasts $1.29 EPS and $9.89B in revenue
- Northland’s recent downgrade to Market Perform with $260 target highlights split analyst sentiment
On Wednesday, Susquehanna’s Christopher Rolland increased his price objective for Advanced Micro Devices to $375, up from his previous $300 estimate, just days before the chipmaker’s May 5 quarterly results. His Positive stance on the stock remains unchanged.
Advanced Micro Devices, Inc., AMD
Shares of AMD climbed approximately 1.6% during premarket hours following the announcement and finished the trading session up about 3.6%.
Rolland’s updated price objective reflects growing optimism surrounding AMD’s server processor performance and the anticipated acceleration of its AI chip offerings. He pointed to ongoing market share expansion for EPYC processors while Intel navigates supply chain challenges.
Regarding AI hardware, the MI350 accelerator is projected to be a significant revenue contributor for the Data Center segment during the first six months of 2026. Rolland anticipates a more pronounced revenue surge in Q4 2026, coinciding with the MI450 and Helios platform debuts.
Two significant contracts support this projection. Both OpenAI and Meta have entered into 6-gigawatt hardware partnerships with AMD. Initial one-gigawatt shipments to each company are anticipated during the latter half of 2026. According to Rolland’s calculations, each gigawatt represents approximately $15 billion in potential revenue.
Oracle has additionally revealed intentions to construct a 50,000-GPU AI supercluster powered by Helios architecture featuring Instinct MI450 GPUs alongside EPYC Venice CPUs.
Drawing from these contracts and the broader product rollout, Rolland projects AMD will capture $17 billion in GPU-related revenue throughout 2026. He observed that income from the OpenAI and Meta partnerships will probably extend into 2027.
Server Processor Market Remains Robust
Rolland’s recent supply chain investigations suggest a powerful Q1 performance with sustained momentum ahead. Demand driven by agentic AI applications is characterized as outstanding, while recent pricing adjustments may provide additional margin support.
PC market demand, conversely, is projected to fall short of typical seasonal patterns in 2026. This represents a weaker element in AMD’s overall narrative, though the Data Center business continues as the primary growth engine.
AMD finished trading at $323.21 on April 28, representing an approximately 51% gain year-to-date. The stock currently carries a trailing P/E ratio of 123x and a forward P/E of 50x — valuations that offer minimal tolerance for operational shortcomings.
Quarterly Results Take Center Stage
Analyst consensus anticipates Q1 earnings of $1.29 per share with revenue reaching $9.89 billion. AMD’s internal forecast projected approximately $9.8 billion, with a $300 million variance range, suggesting roughly 32% year-over-year expansion.
Management’s guidance incorporated about $100 million from MI308 shipments to Chinese customers.
AMD’s fiscal 2025 revenue totaled $34.64 billion, marking 34% growth. The Q4 2025 Data Center division achieved record revenue of $5.38 billion, climbing 39% year over year. Annual free cash flow jumped 129% to reach $5.52 billion.
Not all analysts share the optimistic perspective. Northland recently shifted AMD to Market Perform accompanied by a $260 price objective, creating substantial divergence from Susquehanna’s $375 valuation.
Polymarket prediction markets currently indicate a 76% probability of AMD exceeding expectations when it reports on May 5.
