Advanced Micro Devices (AMD) has received a new street-high price target following the release of its record Q3 earnings. Benchmark analyst Cody Acree has raised his target to $325 (27% upside) from $270, while maintaining a Buy rating, despite the stock falling 5% in yesterday’s after-hours trading session in response to the earnings report.
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AMD reported Q3 revenue of $9.25 billion, beating expectations and marking a 35.6% year-over-year increase, driven by demand for its EPYC CPUs, Ryzen processors, and Instinct AI accelerators. Also, earnings per share rose 30.4% to $1.17 and beat the Street’s estimates. However, this better-than-expected performance was not enough to please investors.
Here’s Why the Analyst Is Bullish about AMD Stock
The five-star analyst believes the drop does not reflect the company’s strong fundamentals or its prospects. He noted AMD’s growing role in the booming AI data center market through both its traditional server CPUs and competitive AI GPUs.
Also, Acree sees potential to gain as more customers seek high-performance compute resources for AI tasks and look for an alternative to Nvidia’s (NVDA) proprietary architecture, especially as NVDA struggles to meet rising demand.
Acree emphasized AMD’s growing leverage in the AI data center space as reflected in major partnerships with OpenAI (PC:OPAIQ), Oracle (ORCL), Meta (META), and the U.S. Department of Energy. The analyst is also optimistic about AMD’s planned 2026 rack-scale server platform to support large-scale AI workloads.
Finally, Acree sees AMD on track to generate tens of billions in annual AI revenue by 2027, with the OpenAI deal alone potentially worth over $100 billion in the coming years.
Is AMD a Buy or Sell Now?
Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 29 Buys and 10 Holds assigned in the last three months. At $267.41, the average AMD price target implies a 4.49% upside potential.
