Shares of Advanced Micro Devices (AMD) are sinking today as the chipmaker heads into its first-quarter earnings report with high expectations after a sharp rally over the past year. According to GF Securities, the call could carry extra weight because investors now need confirmation that the company’s AI and data center momentum can support the stock’s move. Nevertheless, analyst Jeff Pu kept a Buy rating on AMD and raised his price target to $465, thanks to strength in the firm’s data center CPU business. He expects that segment to grow 55% in 2026 and 48% in 2027 due to rising demand from agentic AI workloads.
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Forget margin or options. Here's how the pros trade NVDAAnother major focus will be AMD’s AI accelerator roadmap, especially the upcoming MI455. Pu expects the chip to begin shipping in the third quarter and sees strong demand lasting into 2027 and 2028, which will be supported by large-scale customers such as Meta (META) and Anthropic. From there, investor attention may shift toward the MI550 and how it compares with Nvidia’s (NVDA) Rubin Ultra platform. Pu believes Nvidia’s design has likely moved to a two-die setup, while AMD’s MI500 is still expected to use four-die packaging.
Finally, investors may also be watching for signs of a deeper relationship between AMD and Anthropic. Recent reports have suggested that the two companies may have reached a deal, and a new Anthropic job listing has added to that speculation by referencing ROCm, which is AMD’s open-source software stack. If AMD confirms progress with Anthropic or gives more details on MI455 demand, it could strengthen the bull case. Still, after the stock’s big run, the earnings call needs to show that AMD’s AI opportunity is turning into real, lasting demand.
Is AMD Stock a Good Buy?
In addition, analysts as a whole have a Moderate Buy consensus rating on AMD stock based on 17 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 $308.09 per share implies 9.8% downside risk.
