Advanced Micro Devices (NASDAQ:AMD) stock is on a tear, jumping about 8% today and continuing a steady climb higher. In fact, the chipmaker has now logged 12 straight sessions of gains, lifting shares to new record highs and marking its longest winning streak since 2005.
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The latest uptick coincided with AMD outlining plans with the French government to expand cooperation in support of France’s national AI strategy, with a focus on improving domestic access to advanced computing resources and fostering a more open AI ecosystem.
In a separate development, TSMC, which manufactures AMD’s chips, reported a strong year-over-year rise in Q1 profit and raised its revenue outlook for the year, underscoring expectations that AI-driven demand remains strong across the semiconductor industry.
Investors will obviously be happy with the share price action, and will wonder whether the run can continue. They will find reassurance in Rosenblatt’s Kevin Cassidy’s latest note. Looking ahead to AMD’s Q1 earnings on May 5, Cassidy, an analyst ranked among the top 1% on Wall Street, says the company is one of his “top long data center ideas” this earnings season.
The analyst expects the company to deliver a “beat-and-raise in 1QF26, driven primarily by continued server CPU strength and broad-based data center demand.”
Cassidy thinks AMD should continue to see “modest upside” relative to peers through ongoing EPYC market share gains, while “stronger server CPU demand” and improving supply conditions offer further support.
“We still view server CPU as the primary near-term driver, with Data Center expected to more than offset anticipated semi-custom weakness,” the 5-star analyst went on to add.
Cassidy expects investor attention will remain on AI execution through 2H26 and 2027, especially the timing of MI450/Helios and the scale of hyperscaler rollouts. Meanwhile, the expanded Meta partnership is an “important validation point,” covering up to 6GW of Instinct GPU deployments, with initial 1GW shipments starting in 2H26 on Helios rack-scale systems based on MI450 GPUs and 6th Gen EPYC CPUs.
“Importantly,” Cassidy further said, “management indicated the solution remains fundamentally MI450-based, keeping incremental OpEx minimal and software portability at roughly 95%.”
Longer term, Cassidy still sees AMD as “one of the better ways” to benefit from rising data center compute demand, supported by server CPU share gains and AI platform expansion, underpinning its 35%+ revenue CAGR and over $20 non-GAAP EPS targets over the next 3 to 5 years. Cassidy also thinks additional multi-year, multi-billion-dollar AI deals will be announced in the coming months, which would “further support confidence in AMD’s AI roadmap and customer traction.” However, the analyst notes that server CPU share gains are “unlikely to remain linear indefinitely as competition responds.”
All told, Cassidy assigns a Buy rating on AMD shares alongside a $300 price target, a figure that offers additional upside of 8% in the months ahead. (To watch Cassidy’s track record, click here)
Among Cassidy’s colleagues, 19 other analysts are also AMD bulls, while an additional 8 Holds all add up to a Moderate Buy consensus rating. The ongoing share gains have taken the stock close to the $285.67 average price target. (See AMD stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.