Advanced Micro Devices (AMD) stock skyrocketed in Wednesday’s pre-market trading, with shares jumping over 20% following a strong quarterly performance. The chipmaker’s surge came as strong Data Center results and an improved AI outlook crushed Wall Street expectations. TipRanks’ Crowd Wisdom data also signals rising investor confidence, adding further tailwinds to the stock. At the same time, several Top financial analysts also remained upbeat about the company’s potential. Overall, Wall Street now has a Strong Buy consensus rating on AMD stock.
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Market Digests AMD’s Massive Earnings Beat
AMD delivered a stellar quarter that proved the AI boom is far from over. The company reported a massive revenue beat, highlighted by a 57% jump in its Data Center business. This growth was fueled by record shipments of EPYC processors and a massive acceleration in demand for Instinct AI chips.
Unlike previous quarters in which investors were cautious about the timeline for AI revenue, this report provided clear evidence of momentum. Management’s upbeat outlook and strong guidance for the remainder of 2026 have convinced many that AI-driven growth is accelerating faster than anticipated.
Wall Street Analysts Weigh In on AMD after Earnings
Top analysts are growing increasingly bullish as AMD proves its ability to execute in the competitive AI landscape:
- Robert W. Baird: Top analyst Tristan Gerra raised his price target on AMD stock to $625 from $300 while maintaining an Outperform rating. Gerra highlighted AMD’s rapidly growing server CPU opportunity, with management now expecting the market to reach $120 billion by 2030, largely driven by agentic AI workloads.
- BofA Securities: Another 5-star analyst Vivek Arya raised his price target on AMD to $450 from $310 and maintained a Buy rating. Arya believes AMD is well positioned to benefit from the rapid growth of agentic AI thanks to its broad portfolio of CPUs and AI GPUs. He also pointed to AMD’s relatively small share of the AI accelerator market, suggesting the company still has significant room to grow as AI spending expands over the next several years.
What Does TipRanks’ Crowd Wisdom Show?
Crowd sentiment toward AMD is currently Positive, based on activity from more than 861,000 portfolios tracked by TipRanks.
About 6.2% of tracked portfolios currently hold AMD shares, with investors allocating an average of 7.54% of their portfolios to the stock. Investor activity has also improved recently, with the number of portfolios holding AMD rising by 2% over the past 30 days.
The trend suggests many investors are becoming more confident in AMD’s AI growth story.
Who Are the Best Analysts Covering AMD Stock?
Five-star-rated analyst Timothy Arcuri at UBS is the most accurate analyst covering AMD over the past three months as well as over one year. He has a success rate of 81% and an average return of 50.70% per trade. On TipRanks, Arcuri is ranked #1 out of more than 12,000 analysts tracked.
Arcuri also reiterated a Buy rating on AMD stock with a $455 price target following the earnings report. He said AMD’s strong revenue guidance, especially in the Data Center segment, shows growing momentum in both server CPUs and AI GPUs. Arcuri also said AMD’s long-term GPU targets now look increasingly achievable as AI demand continues to expand. While operating expenses remain high, he expects faster revenue growth and improving scale to drive stronger earnings over the next few years.
