TLDR
- AMD stock rose 5.87% to $245.54, marking its seventh consecutive winning session
- The chip maker has gained 14.15% over the past six trading sessions while the S&P 500 fell 2.43%
- AMD announced a partnership with TCS to develop AI and GenAI solutions for various industries
- Bernstein raised AMD’s price target to $225 while KeyBanc maintained its $270 target ahead of Q4 earnings
- AMD is nearly sold out of server CPUs through the end of 2026, with potential 10-15% price increases
AMD stock climbed 5.87% to $245.54 on Wednesday afternoon. The gain marked the seventh straight session of increases for the semiconductor company.
Advanced Micro Devices, Inc., AMD
The winning streak has delivered a 14.15% gain over six trading sessions. During the same period, the S&P 500 Index dropped 2.43%.
For 2025, AMD stock has posted an 11.97% gain. The benchmark S&P 500 Index fell 0.71% during the same timeframe.
AMD recently announced a partnership with TCS to co-develop AI and GenAI solutions. The collaboration combines TCS’s global network with AMD’s high-performance computing products.
Wall Street sentiment remains positive on the stock. Forty-one analysts rate AMD as a Buy or higher, while 12 maintain a Hold rating. No analysts assign a Sell rating.
Server CPU Demand Driving Growth
Bernstein analyst Stacy Rasgon raised AMD’s price target to $225 from $200. The firm maintained a Market Perform rating on the stock.
AMD currently trades at about 35 times forward earnings. This valuation sits 10 turns higher than NVIDIA, suggesting the market expects strong AI performance.
OpenAI remains the only major announced customer for AMD’s Helios chips. The ramp for OpenAI starts later this year.
KeyBanc maintained its Overweight rating and $270 price target on AMD. The firm expects better-than-consensus results when AMD reports Q4 earnings on February 3.
Server CPU demand continues to show strength. AMD is nearly sold out of server CPUs through the end of 2026.
AI GPU Revenue Projections
Hyperscalers are already securing 2026 capacity. AMD may implement price increases of 10-15% on server CPUs.
KeyBanc projects AI GPU revenue will reach $14-15 billion in 2026. The forecast includes approximately 200,000 MI355 shipments in the first half of the year.
AMD plans to ship 400,000-500,000 MI450 units in the second half of 2026. This includes about 290,000-300,000 units for Helios racks.
MI455 GPUs should begin volume production in the third quarter of 2026. Volume rack shipments of Helios are expected in the fourth quarter.
Analyst Danil Sereda notes that the upcoming Venice EPYC built on TSMC’s 2 nm process could strengthen AMD’s growth engine. Continued CPU market share gains may lead to upside revisions to 2026 guidance.
Analyst Yiannis Zourmpanos said Helios positions AMD as a turnkey AI platform provider. The platform bundles MI455 GPUs, EPYC Venice CPUs, networking, and software.
System-level sales tie AMD’s revenue growth to client capital expenditure expansion. This approach smooths volatility between CPU and GPU demand cycles.
KeyBanc forecasts Q4 2025 revenue of $9.75 billion and earnings per share of $1.36. Consensus estimates stand at $9.64 billion and $1.31 respectively.
For Q1 2026, KeyBanc projects revenue of $9.75 billion and earnings per share of $1.35. Consensus estimates are $9.37 billion and $1.22.
Market sentiment on AMD remains mixed. Bulls point to progress competing with NVIDIA in AI and strong server CPU performance. Bears question whether GPU volumes will meet expectations and AMD’s competitive position against NVIDIA.
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