TLDR
- Susquehanna raised its AMD price target to $375 from $300, keeping a Positive rating
- Analyst Christopher Rolland expects stronger Q1 results driven by server CPU gains and MI350 AI accelerator momentum
- OpenAI and Meta have each signed 6GW hardware agreements with AMD, with first deliveries expected in 2H26
- AMD reports Q1 2026 earnings on May 5; consensus expects $1.29 EPS on $9.89B revenue
- Northland recently downgraded AMD to Market Perform with a $260 target, showing Wall Street is divided
Susquehanna analyst Christopher Rolland raised his price target on AMD to $375 from $300 on Wednesday, ahead of the company’s Q1 2026 earnings report due May 5. He kept his Positive rating on the stock.
Advanced Micro Devices, Inc., AMD
AMD rose around 1.6% in premarket trading on the news and closed up roughly 3.6% on the day.
The revised target reflects Rolland’s confidence in AMD’s server CPU momentum and near-term AI accelerator ramp. He cited continued EPYC processor share gains as Intel works through supply constraints.
On the AI hardware side, the MI350 accelerator is expected to drive Data Center revenue in the first half of 2026. Rolland sees a sharper inflection coming in Q4 2026, tied to the launch of the MI450 and Helios platform.
Two headline deals underpin that outlook. OpenAI and Meta have each signed 6-gigawatt hardware agreements with AMD. The first gigawatt for each is expected to arrive in the second half of 2026. Rolland estimates each gigawatt equates to roughly $15 billion in revenue.
Oracle has also announced plans for a 50,000-GPU AI supercluster using Helios with Instinct MI450 GPUs and EPYC Venice CPUs.
Based on those deals and the broader ramp, Rolland estimates AMD will generate $17 billion in GPU revenue in 2026. He noted that revenues from the OpenAI and Meta agreements will likely spill into 2027.
Server CPU Demand Stays Strong
Recent channel checks, according to Rolland, point to a strong Q1 and continued momentum beyond it. Demand from agentic AI workloads is described as exceptional, and recent price increases could act as a tailwind for margins.
PC demand, however, is expected to run below seasonal norms in 2026. That’s a softer spot in the AMD story, though Data Center remains the dominant driver.
AMD closed at $323.21 on April 28, up roughly 51% year to date. The stock trades at a trailing P/E of 123x and a forward P/E of 50x â multiples that leave little room for execution misses.
Q1 Earnings in Focus
Wall Street consensus puts Q1 earnings at $1.29 per share on revenue of $9.89 billion. AMD’s own guidance called for around $9.8 billion, plus or minus $300 million, implying roughly 32% year-over-year growth.
That guidance included approximately $100 million in MI308 sales to China.
AMD’s fiscal 2025 revenue came in at $34.64 billion, up 34%. Q4 2025 Data Center revenue hit a record $5.38 billion, up 39% year over year. Free cash flow climbed 129% to $5.52 billion for the year.
Not everyone is on board with the bull case. Northland recently downgraded AMD to Market Perform with a $260 price target, a notable gap from Susquehanna’s $375.
Polymarket traders currently put the odds of AMD beating its May 5 earnings at 76%.
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