TLDR
- GF Securities analyst Jeff Pu has a Buy rating on AMD with a $311 price target
- Demand for AMD’s GPUs and CPUs from key customers like OpenAI and Meta is outpacing supply
- AMD held a 41% value share in the server CPU market in Q4 2025
- GF Securities forecasts AMD shipments up 28% and revenue up 46% year-over-year in 2026
- AMD is set to report fiscal Q1 2025 earnings on May 5; consensus expects $1.27 EPS on $9.87B revenue
Advanced Micro Devices is heading into its May 5 earnings report with positive analyst sentiment and a demand picture that keeps tilting in its favor.
Advanced Micro Devices, Inc., AMD
GF Securities analyst Jeff Pu issued a note to clients on April 14 reaffirming a Buy rating on AMD with a price target of $311. The core argument: demand for AMD’s GPUs and CPUs continues to outrun supply.
“For GPU, following our earlier trim of CoWoS, we now see positive signs of re-acceleration for Helios racks,” Pu wrote. He pointed to demand from key customers including OpenAI and Meta as running well ahead of current supply levels.
The AI angle is central here. Pu cited agentic AI as a key driver boosting AMD’s value proposition, with the company’s MI455 GPU and its evolving roadmap seen as strengthening its competitive position.
Server CPU Business Holding Strong
On the CPU side, AMD’s server business continues to gain ground. Data from Mercury Research shows AMD holding a 41% value share in Q4 2025, with a shipment share of 29%.
Pu credited higher N3 wafer capacity and a price hike-driven uptick in average selling prices. The upcoming N2-based Venice CPU is also expected to add momentum.
For the full year, GF Securities projects AMD’s server CPU shipments to grow 28% year-over-year and revenue to climb 46% in 2026. Those are not small numbers for a company already operating at scale.
There’s been debate about whether ARM-based chips could eat into AMD’s market at cloud service providers. Pu acknowledged the trend but argued that x86 remains the preferred pairing for GPU workloads due to better performance in orchestration tasks.
He also pointed to Venice’s technical strengths — lower SRAM latency, software compatibility, and around 1.6 TB/s of memory bandwidth — as reasons AMD holds its ground.
Valuation and Insider Activity
AMD currently trades at a P/E ratio of 93.14x, below the five-year median P/E of 100.88x. The GF Score stands at 93 out of 100, with a Financial Strength rating of 9/10 and a Growth rating of 10/10.
Profitability scores at 7/10, which suggests there’s still room to improve on operational efficiency.
One area worth watching: insiders sold $55.4 million worth of AMD stock over the past three months, with no purchases reported in the same period.
Heading into the Q1 report on May 5, the analyst consensus sits at $1.27 earnings per share on $9.87 billion in revenue.
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