The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 16 | 176.6x | 20.1x | Below average | |
Growth | 74 | 35.0% | 5.6% | Above average | |
Quality | 49 | 7.6% | 7.6% | Near average | |
Safety | 86 | -1.1x | 0.4x | Above average | |
Capital Return | 23 | — | 2.19% | Below average | |
Momentum | 90 | — | — | Above average | |
Sentiment | 53 | — | — | Near average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
AMD stock witnessed a strong upward revision in the Consensus price target by 41.3% over the last 30 days, rising from 309.65 to 437.59, driven by 5 new analysts initiating coverage during the past week. However, a sharp Dispersion in expectations is evident, with targets ranging from a low of 260 to a high of 579, indicating high uncertainty regarding fair valuation despite the positive momentum in estimates.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Advanced Micro Devices, Inc. (AMD) is one of the world's leading semiconductor companies, operating primarily in the design and development of high-performance central processing units (CPUs) and graphics processing units (GPUs) for data centers, personal computers, gaming consoles, and embedded systems. The company relies on a business model centered on selling these advanced chips and integrated solutions to major hyperscalers, original equipment manufacturers (OEMs), enterprise and corporate clients, as well as the defense and supercomputing sectors.
The financial results for the first quarter of fiscal year 2026 demonstrated a qualitative leap in the company's financial performance. Total revenue reached $10.3 billion, representing a robust year-over-year growth of 38%, driven primarily by accelerating demand for artificial intelligence infrastructure. GAAP net income for the first quarter was recorded at $1.4 billion, with earnings per share (EPS) of $0.84, while non-GAAP EPS reached approximately $1.37, a 43% increase compared to the prior year. Gross margin rose to 55%, an increase of 170 basis points, resulting from a favorable product mix and the high contribution of the Data Center segment.
At the segment level, the Data Center segment achieved record revenue of $5.8 billion, representing massive year-over-year growth of 57%, serving as the primary driver of the company's revenue and profits. In contrast, the Client and Gaming segment recorded revenue of $3.6 billion (of which $2.9 billion was from the Client segment, growing 26%, and $720 million was from the Gaming segment, growing 11%), while the Embedded segment revenue reached approximately $873 million, representing a 6% growth year-over-year.
AMD stock is currently trading at $516.1, which represents a notable rise above the average analyst price target of $437.59, though it remains below the highest set price target of $579. Based on the current analyst consensus recommending a Buy, the market capitalization of $841.6 billion reflects great optimism regarding the data center and AI boom, despite the current price exceeding the average annual price targets.
AMD expects revenue for the second quarter of 2026 to be approximately $11.2 billion, plus or minus $300 million. This target represents a year-over-year growth of 46% compared to the corresponding quarter of the prior year, driven by the strong and continuous growth of the Data Center segment and double-digit growth in the Embedded segment.
Agentic AI workloads are causing a massive increase in demand for CPUs to manage and organize data and coordinate workloads in parallel with GPUs. This development has prompted AMD to double its estimate of the total addressable market for server CPUs to exceed $120 billion by 2030, with expectations that its server processor sales will grow by over 70% year-over-year in the second quarter of 2026.
AMD has expanded its strategic partnership with Meta to deploy up to 6 gigawatts of Instinct GPUs across multiple extended generations. This agreement includes the co-design of a custom accelerator based on the MI450 architecture to support Meta's next-generation AI workloads, with shipments starting in the second half of 2026 using the Helios integrated rack architecture.
Automated analysis for informational purposes only — not investment advice.
AMD's executive management confirmed that it enjoys deep and very close partnerships with global memory suppliers, and has succeeded in securing sufficient supply to meet and exceed its production targets for 2027. Despite tightness and price increases in the memory market, the company is confident in its ability to supply its customers' requirements and avoid any shortages that would disrupt the delivery of integrated solutions.