AMD’s Data Center Sales Nearly Doubled and the Stock Is Jumping. Where Does the Price Target Go Now?
AMD reported record quarterly revenue of $13.377B, up 44.68%, and EPS of $2.09, beating estimates. Data Center sales rose 97% to $8.546B, 64% of total revenue. The company guided Q4 revenue to ~$17B, 66% growth. 24/7 Wall St. maintains a $514.18 price target, up 6.26%, with a buy rating. AMD's stock was up 6.97% in premarket trading.
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue mix and guidance, offering traders a concrete basis for positioning.
Market read
The earnings surprise and aggressive guidance make AMD a focal point for AI‑chip investors and may drive sector momentum.
What to watch
Export restrictions and TSMC capacity constraints could curb the data‑center ramp, tempering growth expectations.
Background
AMD’s earnings beat follows a period of price weakness, with the stock down 18% over the past month but up 141% YTD.
Ticker impact
AMD reported a record quarter with revenue up 44.7% and data‑center sales nearly doubling, plus guidance for Q4 revenue around $17 billion.
likely modest upside as the market prices in the guidance and data‑center momentum
Revenue beat, 97% data‑center sales growth and 2027 guidance >80% support a bullish view, but the stock is already trading close to the 12‑month target.
Market effects
Strong data‑center growth may boost the broader AI‑chip sector and pressure peers like Nvidia and Broadcom.
U.S. tech market likely benefits from the upbeat earnings, supporting Nasdaq momentum.
AMD’s guidance could influence global AI‑hardware supply dynamics, especially for hyperscalers.
Counterpoint
The stock may face pressure if inventory buildup and cash‑flow weakness materialize, limiting upside.
Key entities
- companyAMD
Semiconductor maker reporting record quarter and strong data‑center outlook.
