Advanced Micro Devices Targets Massive AI Windfall Ahead

Advanced Micro Devices ( (AMD) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Advanced Micro Devices has seen its share price slip 2.9% over the past week, but the stock remains a standout AI play, up nearly 18% over the past month and more than 112% in the last year. Despite the recent pullback, Wall Street is firmly bullish: AMD holds a Strong Buy consensus rating with an average 12‑month price target of $286.66 versus a recent close of $252.18. Analysts are betting on the company’s next phase of growth in data center and AI chips, driven by strong demand for its EPYC server CPUs and ramping AI GPUs. Susquehanna’s Christopher Rolland and Piper Sandler’s Harsh Kumar both set aggressive $300 price targets, while KeyBanc’s John Vinh sits at $270, all citing upside from stronger‑than‑expected quarterly results and improving visibility into 2026.

Rolland expects AMD’s server CPUs to be effectively sold out through the end of 2026, while modeling about $16 billion in GPU revenue that year, with further upside if new large deals materialize. A central pillar of the bullish case is AMD’s positioning in large‑scale AI infrastructure, highlighted by a massive 6‑gigawatt hardware deal with OpenAI, where each gigawatt could be worth roughly $15 billion in revenue and the first gigawatt is slated to start contributing in the second half of 2026 and into 2027. Additional tailwinds include Oracle’s planned AI supercluster, new U.S. Department of Energy supercomputer wins, and the HUMAIN partnership, alongside a healthier‑than‑expected PC market and improving embedded and gaming demand, even as memory shortages and seasonality may briefly pressure results. Ahead of its February 3 earnings release, Wall Street expects Advanced Micro Devices to report Q4 FY25 earnings of $1.32 per share on $9.67 billion in revenue, with investors focused on data center growth, AI momentum, margins, and guidance that could confirm whether AMD can sustain its rapid expansion and justify its premium valuation.