Chipmaker Advanced Micro Devices (AMD) is getting attention ahead of its earnings report on May 5 after Susquehanna raised its price target from $300 to $375. As a result, the stock is up at the time of writing. The upgrade is mainly based on expectations that AMD will report strong results and give positive guidance, especially as demand for its chips continues to grow.
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A big reason for this optimism is AMD’s data center business, particularly its GPUs. Five-star analyst Christopher Rolland expects steady growth from the MI350 chip in early 2026, followed by a much larger increase later in the year when newer products like MI450 and Helios are released. In addition, AMD has secured major deals with companies like OpenAI and Meta (META) for large-scale hardware deployments.
These deals could generate significant revenue over time. Separately, AMD’s data center CPUs are also seeing strong demand, while recent price increases could help boost revenue further. Because of this, Rolland expects AMD’s GPU revenue to reach about $17 billion in 2026. Overall, AMD is expected to report earnings of $1.28 per share on revenue of $9.88 billion for the first quarter.
Is AMD Stock a Good Buy?
In addition, analysts as a whole have a Moderate Buy consensus rating on AMD stock based on 19 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $296.24 per share implies 10.8% downside risk.
