‘It’s on Fire,’ Says Top Investor About Advanced Micro Devices Stock

Earnings reports are eagerly watched for signs of progress or confirmation of an existing thesis. Hitting or surpassing expectations can often trigger a bull run, and that’s clearly been the case for Advanced Micro Devices (NASDAQ:AMD) over the past few days.

AMD’s Q1 2026 revenue of $10.253 billion was up 38% year-over-year, while GAAP gross profit of $5.416 billion increased by 45%. Moreover, the data center segment’s revenue of $5.8 billion was up 57% year-over-year, reflecting an even more advanced pace of growth.

That sales figure rose beyond the $9.9 billion that analysts had been expecting, while AMD’s non-GAAP EPS of $1.37 was also more than the $1.29 that Wall Street had predicted. Company management also gave strong guidance for Q2, predicting revenue of $11.2 billion (plus or minus $300 million).

The top- and bottom-line beat – and promising forward-looking outlook – certainly contributed to the good vibes, and the company’s share price has jumped by some 28% in the days since the May 5^th earnings call. That’s the continuation of an existing trend, which has seen AMD rise by more than 320% during the past twelve months.

Noting that AMD has been “on fire,” top investor Geoffrey Seiler still believes that there’s further room for this bull run.

“The semiconductor company has a huge opportunity with server CPUs,” states the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.

Seiler explains that the rise of agentic AI is putting more of an emphasis on CPUs, which will have the effect of significantly tightening the ratio of GPUs to CPUs in data centers. He notes that AMD has already enjoyed the fruits of this rising demand, which seems likely to pick up the pace going forward.

“As the market leader in the space, it is the company best positioned right now to capitalize on this huge trend,” adds Seiler.

At the same time, the company has large GPU deals with OpenAI and Meta Platforms that should help drive revenue in that segment as well. While he admits that AMD isn’t cheap when looking at its 56x forward price-to-earnings ratio, Seiler calculates that a forward PEG ratio of 0.3 makes the company seem undervalued.

“I think the stock still has strong upside [from] here, even after its big gains,” concludes Seiler. (To watch Seiler’s track record, click here)

Wall Street heartily agrees with this assessment. With 27 Buys and 8 Holds, AMD enjoys a Strong Buy consensus rating. However, its 12-month average price target of $442.94 implies mostly sideways trading going forward, suggesting that even some of the bulls don’t expect much further room to run. (See AMD stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.