"AMD's August earnings proved the AI story is real," Truist analysts said after the chipmaker posted results that sent three major brokerages scrambling to raise their price targets. The company's data center forecast alone shifted the entire narrative. Management now expects the segment to more than double by 2027, backed by expanding AI deployments and customer commitments that feel increasingly concrete rather than speculative.
Truist lifted its target to $594 from $478, signaling 24% upside from current levels. The firm bumped 2027 EPS estimates to $14.49 from $10.61, applying a 41-times multiple that aligns with peers like Nvidia and Intel. Bernstein went further, raising its target from $600 to $650 on the back of Q3 guidance hitting $13 billion in revenue, beating consensus by $500 million. The firm sees data center hitting roughly $8.1 billion, crushing Street estimates of $7.7 billion. Server CPU revenue is projected to grow over 80% in H2 2026, while total data center revenue could exceed 100% growth.
KeyBanc reaffirmed its $725 target, implying roughly 40% upside, after Q2 results and Q3 guidance came in slightly ahead. AMD's AI GPU revenue alone hit approximately $2.9 billion with 190% annual growth, according to the firm's estimates. The momentum spans both traditional server CPUs, which grew over 70% in the latest quarter, and the emerging Helios platform that analysts are watching closely for the second half of 2026 and beyond.
The disconnect between falling stock prices and rising analyst targets suggests the market remains skeptical despite the fundamentals. AMD faces execution risk on its aggressive roadmap, and the semiconductor sector's cyclical nature means even strong guidance can reverse quickly. Still, three major brokerages moving targets higher in the same week signals conviction that the data center opportunity extends well beyond the current hype cycle.
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