Key Takeaways
- Susquehanna elevated AMD’s price target from $300 to $375 while maintaining its Positive rating on the semiconductor stock
- Christopher Rolland from Susquehanna forecasts robust Q1 performance fueled by server CPU market share and MI350 AI chip traction
- Major tech players OpenAI and Meta have committed to 6-gigawatt hardware partnerships with AMD, with initial shipments slated for late 2026
- The chipmaker’s Q1 2026 financial results arrive May 5; Wall Street projects $1.29 earnings per share on $9.89 billion in sales
- Contrasting views emerged as Northland dropped AMD to Market Perform with a $260 valuation, highlighting analyst disagreement
Christopher Rolland, an analyst at Susquehanna, boosted his valuation on AMD shares to $375 from $300 this Wednesday, just days before the semiconductor company unveils its Q1 2026 financial performance on May 5. His Positive stance on the equity remains unchanged.
Advanced Micro Devices, Inc., AMD
Shares of AMD climbed approximately 1.6% during premarket hours following the announcement and finished the trading session up about 3.6%.
Rolland’s updated valuation stems from his optimism surrounding AMD’s expanding server CPU business and the accelerating deployment of its AI chips. He highlighted ongoing market share expansion for the company’s EPYC processors as Intel grapples with supply chain challenges.
Regarding AI hardware developments, the MI350 accelerator is positioned to boost Data Center segment sales during the first six months of 2026. Rolland anticipates a more significant acceleration arriving in Q4 2026, coinciding with the MI450 and Helios platform debut.
Two significant contracts support this projection. Both OpenAI and Meta have committed to 6-gigawatt hardware partnerships with AMD. Initial gigawatt deployments for both companies are scheduled for the latter half of 2026. Rolland calculates that each gigawatt translates to approximately $15 billion in sales.
Oracle has separately revealed intentions for a 50,000-GPU artificial intelligence supercluster powered by Helios featuring Instinct MI450 GPUs alongside EPYC Venice CPUs.
Drawing from these partnerships and the wider market expansion, Rolland projects AMD will secure $17 billion in GPU-related revenue during 2026. He emphasized that income from the OpenAI and Meta contracts will probably extend into 2027.
Server Processor Market Remains Robust
Rolland’s recent industry research suggests a vigorous Q1 with sustained strength extending beyond. He characterizes demand from agentic AI applications as outstanding, while recent pricing adjustments could provide upward pressure on profit margins.
Personal computer demand, conversely, is anticipated to trail seasonal averages throughout 2026. This represents a weaker element in AMD’s narrative, though the Data Center business remains the primary growth engine.
AMD finished trading at $323.21 on April 28, representing an approximately 51% gain year to date. The equity carries a trailing price-to-earnings ratio of 123x and a forward multiple of 50x — valuations that offer limited tolerance for operational shortfalls.
Quarterly Results Take Center Stage
Analyst consensus forecasts Q1 earnings of $1.29 per share on top-line revenue of $9.89 billion. AMD’s internal projections indicated approximately $9.8 billion, with a variance of $300 million in either direction, suggesting roughly 32% year-over-year expansion.
That internal forecast incorporated approximately $100 million from MI308 shipments to Chinese customers.
AMD’s fiscal 2025 revenue totaled $34.64 billion, marking a 34% increase. Q4 2025 Data Center revenue reached a company record of $5.38 billion, climbing 39% from the prior year period. Free cash flow surged 129% to $5.52 billion annually.
Not all analysts share the optimistic perspective. Northland recently lowered AMD to Market Perform alongside a $260 price objective, creating a substantial divergence from Susquehanna’s $375 target.
Polymarket participants currently estimate a 76% probability that AMD will exceed expectations when reporting May 5 earnings.
