Advanced Micro Devices (AMD) shares are trading higher today as investors look ahead to the chipmaker’s earnings report, scheduled for Tuesday, February 3. While much of the market remains focused on how AMD stacks up against Nvidia (NVDA) in AI, top Wedbush analyst Matt Bryson said that comparison misses the bigger point. According to Wedbush, AMD can still deliver solid growth even if it doesn’t catch Nvidia in AI chips.
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The five-star analyst expects AMD’s fourth-quarter results to benefit from strong demand for PCs and server CPUs. He said tight supply heading into the first quarter should support both sales and margins, especially as server CPU prices look set to rise by double digits.
Why CPUs Matter More Than the AI Race
Bryson said AMD’s server CPUs, already its highest-margin products, offer a clear path to profit growth through 2026. In his view, strong pricing and steady demand in this segment can drive earnings even if AMD’s AI rollout takes longer to ramp.
Importantly, Bryson noted that if AI shipments slip modestly, AMD can shift capacity toward server CPUs instead. That move could actually be better for margins, rather than relying on a fast and costly AI ramp. He said this flexibility gives AMD a safety buffer that many investors are missing.
Bryson also pointed to a possible boost from China, where approvals for some AI-related shipments could unlock added demand. Taken together, Wedbush sees AMD as well positioned to grow profits without needing to win an all-out AI battle with Nvidia.
Wedbush maintained an Outperform rating on AMD with a $290 price target, arguing that AMD’s traditional strengths make the stock attractive even as questions around AI timing persist.
Is AMD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMD stock based on 27 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $285.90 per share implies 16.76% upside potential.
