AMD Earnings ‘Checked Every Box,’ But Wall Street Remains Split On The Stock

• BofA raised its 2027 and 2028 earnings estimates but cut its price target to $650, citing that lower sector multiples warrant a more cautious valuation of the stock.
• Mizuho made the steepest price target cut, lowering its forecast to $610 from $705, while maintaining an ‘Outperform’ rating.
• JPMorgan raised its target to $575 and called AMD’s quarterly report strong, but retained a ‘Neutral’ rating.

Advanced Micro Devices (AMD) shares were flat in early-morning trade on Tuesday, with Wall Street divided on the stock’s valuation after the chipmaker’s third-quarter results. 

According to TheFly, Mizuho made the largest cut, lowering its target to $610 from $705, while keeping an ‘Outperform’ rating. While some firms lowered their targets to account for valuation pressures, analysts broadly pointed to strong data center demand, improving supply conditions and a higher growth outlook for 2027.

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Stifel, meanwhile, raised its target to $725 from $700, the highest among the seven firms, as reported by The Fly. JPMorgan made the smallest increase, taking its target to $575 from $550, but retained a ‘Neutral’ rating.

BofA said AMD “checked every box we expected ahead of the earnings call.” The firm raised its earnings estimates for 2027 and 2028 by 4% and 6%, respectively. However, it still cut its price target on AMD to $650 from $720, citing “the recent contraction in sector multiples.”

AMD stock edged 0.4% higher in pre-market trade, after dropping as much as 7.5% after hours, and was among the top trending tickers on Stocktwits at the time of writing. 

Data Center Demand Drives AMD’s Growth Outlook

Piper Sandler said AMD’s data center business was the primary driver of its quarterly beat. The firm raised its fiscal 2027 EPS estimates and its forecasts for 2028 and 2029.

Wells Fargo also highlighted the data center business, saying AMD’s above-consensus 2027 revenue outlook was supported by a strong ramp in the segment and solid supply chain execution. The firm said those factors should outweigh expected weakness in the client business and help drive the shares higher.

UBS pointed to strength in server CPUs, which helped offset weakness in client processors. The firm also said AMD’s 2027 expectations were well above Street estimates, citing improving wafer and substrate supply, the company’s product roadmap and execution relative to Intel (INTC).

JPMorgan raised its price target to $575 from $550 and kept a ‘Neutral’ rating. It stated that AMD’s Q3 report was strong, adding that the company’s guidance was even stronger, exceeding both consensus expectations and buy-side estimates.

AMD Q3 Earnings Recap

AMD reported revenue of $13.4 billion, up 45% from a year earlier, and beating Wall Street estimates of $13.1 billion, as per Koyfin. Earnings per share (EPS) came in at $2.09, higher than the $1.94 consensus estimate.

Revenue from the data center business was $8.5 billion, up 97% year-over-year, and now accounted for 64% of AMD’s overall revenue.

“The third quarter was the largest and most profitable in our history,” CEO Lisa Su said during the earnings call. She added that the company now expects revenue to grow more than 80% in 2027.

How Is Retail Feeling About AMD Stock?

On Stocktwits, retail sentiment around AMD stock shifted to ‘extremely bullish’ from ‘bullish’ territory over the past day, while chatter rose to ‘extremely high’ from ‘high’ levels. Platform data showed a 200% increase in message volume in the last 24 hours.

Some retail traders on Stocktwits focused on the strength of the earnings report, while others focused on AMD’s price, with some predicting it would rally once the market opened on Wednesday.

AMD stock has more than doubled year-to-date.

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