Chipmaker Advanced Micro Devices (AMD) is scheduled to announce its results for the first quarter of 2026 on May 5. AMD stock has rallied more than 68% year-to-date, driven by demand for its EPYC server CPUs (central processing units) and AI GPUs (graphics processing units). Moreover, strategic deals, including the recently announced partnerships with Anthropic and Meta Platforms (META), have also boosted investor sentiment. While AMD bulls are confident about the robust demand backdrop for the company’s AI chips, some analysts are concerned about valuation and intense competition.
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New trading tool for NVDA bearsWall Street expects AMD to report EPS (earnings per share) of $1.28, reflecting 33.3% year-over-year growth. Revenue is expected to rise about 33% to $9.88 billion.
RBC Analyst Raises AMD Stock Price Target Ahead of Q1 Earnings
Heading into Q1 earnings, RBC Capital analyst Srini Pajjuri increased the price target for AMD stock to $325 from $230 and reiterated a Hold rating. The 5-star analyst expects AMD to deliver a beat and raise, though by a smaller margin than Intel (INTC). Pajjuri explained that while CPU demand is solid, AMD has lower exposure than Intel, and the ongoing wafer supply constraints are also a factor.
The analyst sees modest upside on the AI GPU front and expects AMD to reiterate its MI4xx (Helios) ramp schedule at OpenAI and Meta Platforms. Pajjuri expects secular growth in the CPU-to-GPU ratio to be a tailwind and remains bullish about AMD’s AI GPU prospects. That said, with AMD stock trading at a P/E of 33x 2027 earnings, which is about 75% premium to Nvidia (NVDA), Pajjuri believes that risk/reward is fairly balanced.
D.A. Davidson Analyst Is Bullish on CPU Demand
Meanwhile, following Intel’s stellar results, D.A. Davidson analyst Gil Luria upgraded AMD stock to Buy from Hold and lifted his price target to $375 from $220. The 4-star analyst believes that Intel’s results signal a major ramp ahead for AMD’s CPU business, with agentic AI driving strong server demand. The 4-star analyst thinks that the extent of Intel’s Q1 beat indicates significant upside to AMD’s estimates, beginning with Q1 2026. In particular, Luria noted that agentic AI workloads have moved computing needs beyond GPUs, boosting CPU demand.
In this regard, the analyst noted that Intel CFO David Zinsner highlighted the expectation that the industry will grow by double digits, with momentum continuing into 2027. “By Intel CEO Tan’s assessment, the ratio of GPUs to CPUs will go from 8 to 1 for pretraining closer to parity for agentic workloads,” said Luria.
Furthermore, Luria believes that AMD is well-positioned to significantly hike its prices across the portfolio to support and enhance margins, given his expectation that demand will outpace supply for the foreseeable future. The analyst raised his 2026 estimates for AMD by $2 billion for revenue and $1.5 billion for gross profit, significantly above guidance and consensus. Despite AMD’s lower share in the CPU market, the analyst remains optimistic about these estimates due to tight supply.
Is AMD Stock a Buy, Hold, or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 19 Buys and nine Holds. Following a solid rally, the average AMD stock price target of $300.04 indicates 17% downside risk.
