AMD Stock: Analysts Turn Bullish Before Earnings – Here’s Why

TLDR

• AMD shares surged 7.7% Wednesday following positive analyst commentary on server chip demand
• Bernstein increased price target from $200 to $225, citing AI progress and server strength
• KeyBanc predicts Q4 earnings beat due to Turin CPU demand potentially exhausting 2026 supply
• Analysts forecast 30% growth in Epyc processor sales for 2026
• OpenAI partnership expected to generate AI revenue starting second half of 2026

AMD stock jumped 7.7% Wednesday to close at $249.76 after analysts highlighted strong demand for the company’s server processors. Two separate Wall Street firms issued positive notes on the chipmaker’s prospects ahead of its Feb. 3 earnings report.

Advanced Micro Devices, Inc., AMD

Bernstein analyst Stacy Rasgon lifted his price target to $225 from $200. He kept a Market Perform rating on the shares.

Rasgon cited AMD’s progress in artificial intelligence as a key factor. OpenAI is currently the only major announced customer for AMD’s Helios chips.

The analyst expects the OpenAI ramp to begin later in 2026. This timeline reduces near-term pressure on AMD’s AI business.

Rasgon sees AMD benefiting from server market strength and share gains. These factors could support the stock while larger AI deals develop.

The stock trades at 35 times forward earnings. That valuation sits 10 turns above Nvidia, indicating investors already anticipate strong AI results.

Supply Constraints Drive Pricing Power

KeyBanc analyst John Vinh predicts AMD will exceed Wall Street estimates for the fourth quarter. His forecast centers on exceptional demand for Turin data center CPUs.

Vinh believes AMD has nearly sold out its entire 2026 server CPU inventory. This supply shortage could enable price hikes of up to 15%.

Major cloud providers are competing to lock in chip allocations. The competition gives AMD leverage to improve margins through higher prices.

Some investors remain skeptical about AMD’s ability to challenge Nvidia in high-end GPUs. Vinh expects management to address these concerns during the earnings call.

Details about customer wins and production timelines could ease doubts. The market wants clarity on AMD’s GPU competitiveness in AI workloads.

AI Revenue Growth on Horizon

Rasgon projects a 30% increase in Epyc processor sales during 2026. The high-performance chips serve as AMD’s core server product.

The analyst anticipates the OpenAI partnership will boost AI-related revenue. These sales should materialize in the second half of the year.

AMD’s revenue grew 32% over the past twelve months. Analysts project similar growth rates for the current year.

Earnings Call Looms

The company reports fourth-quarter results on Feb. 3. Investors will scrutinize commentary on server demand and AI customer pipeline.

AMD recently added KC McClure to its board of directors. McClure held CFO and senior advisor roles at Accenture.

Riot Platforms signed a ten-year data center agreement with AMD for its Texas facility. The deal starts with 25 MW of infrastructure and could expand to 200 MW beginning January 2026.

Wells Fargo maintains an Overweight rating with a $345 price target on AMD stock. The firm cites AI potential as a primary driver.

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