Key Highlights
- Susquehanna elevated its AMD price target to $375 from $300 while maintaining a Positive rating
- Analyst Christopher Rolland anticipates robust Q1 performance fueled by server CPU growth and MI350 AI accelerator traction
- OpenAI and Meta each committed to 6GW hardware partnerships with AMD, with initial shipments slated for 2H26
- AMD scheduled to release Q1 2026 earnings on May 5; Wall Street projects $1.29 EPS and $9.89B in revenue
- Northland established a Market Perform rating with $260 target, revealing analyst disagreement on valuation
Susquehanna analyst Christopher Rolland increased his AMD price target to $375 from $300 on Wednesday, positioning ahead of the chipmaker’s Q1 2026 earnings announcement scheduled for May 5. His Positive rating remains unchanged.
Advanced Micro Devices, Inc., AMD
AMD gained approximately 1.6% during premarket hours following the announcement and finished the trading session up about 3.6%.
The enhanced price target demonstrates Rolland’s optimism regarding AMD’s server CPU performance and upcoming AI accelerator expansion. He highlighted ongoing EPYC processor market share improvements while Intel navigates supply chain challenges.
Regarding AI hardware developments, the MI350 accelerator appears positioned to boost Data Center revenue throughout early 2026. Rolland anticipates a more pronounced acceleration arriving in Q4 2026, aligned with the MI450 and Helios platform debut.
Two significant contracts support this projection. OpenAI and Meta have each committed to 6-gigawatt hardware partnerships with AMD. The initial gigawatt for both companies should materialize in the second half of 2026. Rolland calculates each gigawatt represents approximately $15 billion in revenue potential.
Oracle has separately revealed intentions for a 50,000-GPU AI supercluster leveraging Helios technology with Instinct MI450 GPUs and EPYC Venice CPUs.
Considering these agreements and the broader deployment timeline, Rolland projects AMD will produce $17 billion in GPU revenue during 2026. He observed that income from the OpenAI and Meta contracts will probably extend into 2027.
Server CPU Market Maintains Momentum
Recent supply chain investigations, per Rolland’s assessment, suggest a robust Q1 with sustained strength ahead. Demand stemming from agentic AI applications appears exceptionally vigorous, while recent pricing adjustments may provide margin benefits.
PC demand, conversely, appears likely to track below typical seasonal patterns in 2026. This represents a weaker element in AMD’s narrative, though Data Center operations remain the primary growth engine.
AMD concluded trading at $323.21 on April 28, climbing approximately 51% year to date. The equity trades at a trailing P/E of 123x and a forward P/E of 50x — valuation metrics that allow minimal margin for operational shortfalls.
Q1 Financial Results Await
Wall Street analysts project Q1 earnings at $1.29 per share alongside revenue of $9.89 billion. AMD’s official guidance indicated roughly $9.8 billion, with a variance range of $300 million, suggesting approximately 32% year-over-year expansion.
That forecast incorporated about $100 million in MI308 shipments to China.
AMD’s fiscal 2025 revenue reached $34.64 billion, growing 34%. Q4 2025 Data Center revenue achieved a record $5.38 billion, advancing 39% year over year. Free cash flow surged 129% to $5.52 billion annually.
Analyst opinions remain divided. Northland recently assigned AMD a Market Perform rating with a $260 price target, representing a substantial difference from Susquehanna’s $375 forecast.
Polymarket traders currently estimate the probability of AMD surpassing its May 5 earnings expectations at 76%.
