TLDR
- AMD beat Q1 2026 estimates with EPS of $1.37 vs $1.29 expected and revenue of $10.25 billion, up 37.8% year over year
- Data Center revenue jumped 57% year over year to $5.8 billion, driven by MI-series AI accelerators and EPYC processors
- Multiple analysts raised price targets — Bank of America to $500, Mizuho to $515, DA Davidson to $425
- AMD guided Q2 revenue at ~$11.2 billion and expects server CPU revenue to grow more than 70% year over year
- Citi raised its target from $248 to $358 but kept a Neutral rating, noting the stock still trades at a 20% premium to that target
AMD stock opened at $449.70 on Friday, not far off its 52-week high of $469.21. The stock has more than quadrupled from its 52-week low of $107.67.
Advanced Micro Devices, Inc., AMD
AMD reported Q1 2026 earnings on May 5. EPS came in at $1.37, beating the consensus estimate of $1.29. Revenue hit $10.25 billion, ahead of the $9.90 billion analysts had expected. That marked a 37.8% jump compared to the same quarter last year.
The standout number was in the Data Center segment. Revenue there grew 57% year over year to nearly $5.8 billion. AMD’s MI-series AI accelerators, along with its Instinct and EPYC processors, drove that growth as cloud providers continued to ramp up AI infrastructure spending.
Gaming and Client was a different story — that segment remains a smaller part of the picture as AMD leans harder into data center and AI.
AMD also unveiled new Ryzen PRO 9000 workstation chips with 3D V-Cache during the week, targeting AI workloads, simulation, and gaming. That product refresh could support the Client and Gaming segment later in 2026.
Analyst Targets Move Higher
The earnings beat triggered a wave of price target increases. Bank of America lifted its target from $450 to $500 with a Buy rating. Mizuho went further, raising its target from $415 to $515 with an Outperform rating. DA Davidson moved from $375 to $425 with a Buy.
Zacks upgraded AMD from Hold to Strong Buy on the day results dropped. The consensus across analysts now sits at a Moderate Buy rating with an average target of $396.95 — though that average is being pulled down by more cautious voices.
Citi was among those cautious voices. The firm raised its target from $248 to $358 but held its Neutral rating. At current price levels, even Citi’s new target implies a roughly 20% downside.
UBS also flagged that AMD and Arm are gaining server market share while Intel loses ground — a structural tailwind that supports the bull case for AMD’s data center business.
Q2 Guidance and Insider Activity
For Q2 2026, AMD guided revenue of approximately $11.2 billion, plus or minus $300 million. The company is targeting adjusted gross margins of around 56%. Server CPU revenue is expected to grow more than 70% year over year in the quarter.
On the insider side, EVP Mark Papermaster sold 31,320 shares at an average price of $350 on April 24, totaling roughly $10.96 million. CEO Lisa Su sold 85,000 shares at $198.77 in March. Both sales were executed under pre-arranged Rule 10b5-1 trading plans.
Institutional ownership stands at 71.34%. Bank Julius Baer increased its AMD stake by 1.9% in Q4, bringing its holdings to 98,090 shares worth $21 million at the end of the reporting period.
AMD carries a market cap of $733 billion, a P/E ratio of 147, and a beta of 2.40.
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