Advanced Micro Devices just got a fresh vote of confidence from one of Wall Street‘s most accurate stock pickers, even as the chip giant’s shares took a beating after earnings.
JPMorgan analyst Harlan Sur raised his price target on AMD (AMD) to $550 from $385 recently, according to a research note reviewed by TradingView.
Sur ranks number 15 out of 12,453 Wall Street analysts tracked by TipRanks, with a 71% success rate and an average return of 43.40% per rating.
Sur maintained his “Neutral” rating on the stock even as he raised the stock price target.
He told investors that AMD delivered another beat-and-raise quarter compared to consensus expectations, though the September quarter guidance landed modestly below what buyside investors were hoping for.
The bigger story, in his view, is what happens next.
AMD is part of the AI megatrend
AMD is among the most popular AI stocks globally.
The company makes Instinct, its lineup of AI accelerators that compete directly with Nvidia‘s GPUs, along with Epyc server processors that power much of the world’s cloud and enterprise computing.
Down almost 20% from all-time highs, AMD stock has returned over 300% in the last three years.
In this period, AMD has increased market share in the AI chip segment, while the CPU business rides a second wave of demand tied to AI agents.
That combination, GPUs for training and inference plus CPUs to run the agents around them, is what Sur pointed to when he raised his AMD stock price target.
Sur’s note said data center growth is positioned to outpace overall AI infrastructure spending in 2027 significantly.
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That’s a notable call, since it suggests AMD’s data center business could grow faster than the broader AI buildout itself.
AMD CEO Lisa Su made a similar point on the company’s July earnings call, stating:
“We now expect data center segment revenue to more than double year over year in 2027.”
Su also told analysts that both the server CPU business and the AI accelerator business are set to be major growth drivers going forward, saying, “Both businesses are very significant drivers of our 2027 growth and beyond.”
AMD stock sinks despite consensus beat
AMD’s second quarter results, reported in early August, beat consensus estimates. According to a CNBC report, AMD posted:
- Adjusted earnings of $1.66 per share versus the $1.62 expected.
- Revenue of $11.54 billion, above estimates of $11.28 billion.
- Total revenue climbed 50% from a year earlier.
- Data center sales, AMD’s biggest growth engine, jumped 107% year over year to $6.7 billion, driven by both CPU and GPU demand.
- AMD forecast roughly $13 billion in third quarter revenue, plus or minus $300 million.
- That was ahead of the $12.52 billion analysts expected, but below the $14 billion some had hoped for.
AMD stock fell more than 7% following its earnings report, due to slowing growth and a sky-high valuation.
Today, the tech stock trades at 44.5x forward earnings, below its five-year average of 34.5x.
Other analysts lift AMD stock price target
Sur isn’t alone in raising his AMD stock price target. Several other firms raised their AMD price targets after earnings, even while flagging that results missed the most optimistic forecasts on the Street, according to TradingView.
- Jefferies raised its target to $650 from $640 while keeping a Buy rating, pointing to an expected pickup in AI GPU growth in the fourth quarter.
- Wells Fargo lifted its target to $700 from $615, maintaining an Overweight rating and citing AMD’s forecast for revenue growth above a 35% compound annual rate between 2025 and 2030.
- Truist moved its target to $594 from $478 with a Buy rating, pointing to improving product performance and stronger execution.
- Morgan Stanley, more cautious, raised its target to $465 from $410 while keeping an Equal Weight rating, calling management’s outlook for data center revenue to more than double in 2027 “certainly positive.”
What’s driving the AMD stock outlook
Much of the optimism traces back to AMD’s Helios rack-scale AI system, which began shipping this quarter to major customers including Meta, OpenAI, and Oracle.
AMD CFO Jean Hu told CNBC the company expects data center sales to accelerate in the back half of 2026, driving stronger revenue growth and continued earnings expansion.
AMD also raised its longer-term market forecasts, now expecting the AI accelerator market to approach $1.4 trillion by 2030 and the server CPU market to reach around $220 billion.
Related: Nvidia dominates AI chips, but BofA sees AMD closing in
Su said that customers are giving AMD much more visibility into their compute needs than in the past, which is letting the company invest further out across its supply chain.
For now, Wall Street’s price target math suggests plenty of room for AMD stock to run, even if the stock needs to work through some near-term turbulence first.
