DA Davidson’s Gil Luria spent a good while watching Advanced Micro Devices (AMD) from the stands before deciding it was time to get off the fence. He changed his rating from “Neutral” to “Buy” and dropped his price target from $220 to $375, a 70.5% jump that earned its place as one of the boldest moves Wall Street made this year.
AMD stock accepted the compliment and followed it up on Friday, April 24, gaining 13.9% intraday to hit a new 52-week high of $352.99. Luria anchored the $375 target at 32 times calendar year 2027 EPS and simultaneously raised its 2026 revenue estimate by $2 billion and its gross profit estimate by $1.5 billion, beating both the Wall Street consensus and Advanced Micro’s own guidance by a comfortable margin.
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Intel Corporation (INTC) provided Luria with the smoking gun. Intel’s fiscal 2026 first-quarter report showed revenue of $13.6 billion, beating the midpoint of its own guidance by $1.4 billion almost entirely thanks to a scorching surge in server Central Processing Unit (CPU) demand.
The plot thickens structurally because artificial intelligence (AI) workloads are moving away from pre-training toward inference, agent AI, and multi-agent computing, driving the graphics processing unit (GPU) to CPU ratio from about 8:1 to parity.
Luria drew a straight line between Intel’s windfall and Advanced Micro’s opportunity, noting that if Intel was adding roughly $2.5 billion a year in CPU shortages alone, AMD has the same room to maneuver.
He also noted that demand outpacing supply gives Advanced Micro the leverage to raise prices across its portfolio and ultimately reassure margin skeptics. With demand well ahead of supply and the CPU era fully returning, Luria’s note essentially tells margin skeptics to update their spreadsheets.
About advanced microstock
Headquartered in Santa Clara, California, Advanced Micro Devices is a global semiconductor powerhouse that makes its living designing high-performance CPUs, GPUs, and AI accelerators.
Advanced Micro’s product bench runs deep, covering Ryzen processors, Radeon graphics, EPYC server chips, field-programmable gate arrays (FPGAs), and adaptive systems on a chip (SoC), giving the company a foot in nearly every door worth knocking in the computing world, all while sitting comfortably atop a roughly $567 billion market cap.
Advanced Micro stock has seen an absolute crash over the past 52 weeks, soaring 244.9%. Momentum extended into 2026, with the stock up 55.65% year to date (YTD) and up another 65% in the last month alone.
The last five trading sessions alone added 21.24% to the ticker, taking advantage of a remarkably warm analyst sentiment that has the market paying close attention.
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AMD shares currently trade at 52.82 times forward adjusted earnings and 12.12 times sales, both figures representing a premium not only to the broader industry but also to the company’s own five-year average multiples. He notes that the market has priced in a lot of optimism about the future direction of AMD stock.
Advanced Micro beats fourth quarter earnings
Advanced Micro arrived on February 3 with fourth-quarter fiscal 2025 earnings that made Wall Street do a double take. Revenue soared 34.1% year-over-year (y-o-y) to $10.3 billion, leaving analyst estimates of $9.7 billion eating dust. Adjusted EPS was 40.4% above the prior-year figure to $1.53, comfortably beating Street forecasts of $1.32.
The data center segment carried the heaviest load, rising 39% year-over-year to $5.4 billion and proving once again that AI infrastructure spending shows no signs of slowing down.
Each segment of the business brought its weight to the table. The integrated segment, the slowest horse in the stable, still advanced 3% year-over-year to $950 million, with high expectations of it gaining momentum as the year progresses. The Customers and Gaming segment firmly threw itself into the ring with a strong increase of 37% to $3.9 billion.
Non-GAAP operating income increased 40.9% from the prior year’s figure to $2.9 billion. Non-GAAP net income came in all the way, growing 41.8% year-over-year to $2.5 billion. Free cash flow increased 90.2% to $2.1 billion from the prior-year quarter, and adjusted EBITDA reached $3.0 billion, up 38.7% from the same quarter last year.
Advanced Micro’s fiscal 2026 first-quarter earnings report, scheduled for Tuesday, May 5, after the market closes, now sits at the top of every semiconductor watcher’s calendar as one of the sector’s most anticipated releases.
Management has called for fiscal 2026 first-quarter revenue of approximately $9.8 billion, plus or minus $300 million. The midpoint of that range marks year-over-year growth of about 32% and sequential decline of about 5%, with non-GAAP gross margin expected to remain at about 55%.
On the other hand, analysts following the stock predict that the EPS for the first quarter of fiscal 2026 will grow 33.3% year-on-year to $1.04. They have set their sights on the full fiscal 2026 bottom line rising 76.8% to $5.78, followed by another 59.2% rise to $9.20 in fiscal 2027.
What do analysts expect from advanced micro stocks?
AMD stock continues to get strong support from the street. The investment firm Stifel Nicolaus intervened together with DA Davidson. Analyst Ruben Roy raised his price target to $320 from $280 and maintains a “Buy” rating, indicating confidence that demand for AI infrastructure will continue to exceed expectations and drive continued expansion.
Wall Street has given AMD stock an overall rating of “Strong Buy.” A total of 45 analysts give their opinion, of which 32 have issued “Strong Buy” calls, two lean toward “Moderate Buy” and 11 choose to remain cautious with “Hold” ratings.
The stock is already trading above its average price target of $290.80, showing that momentum hasn’t waited for the consensus to catch up. At the upper end, the Street-High target of $380 points to a 13.12% gain from current levels, reinforcing the view that optimism around AI-driven growth still has room to sustain.
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On the date of publication, Aanchal Sugandh had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
