AMD Has 'Meaningful Upside' Ahead Of Earnings Due To Magnitude Of Intel's Q1 Beat, Says Analyst Who Hiked Price Target By 70%

• DA Davidson stated in its note that the magnitude of Intel’s earnings beat in Q1 indicates a structural increase in demand for central processing units.
• According to the firm, Intel’s performance shows that CPUs are “reinserting” themselves as an indispensable foundation of the AI era.
• AMD, a key rival to Intel in the CPU segment, could also benefit from this demand, according to DA Davidson.

Advanced Micro Devices Inc. (AMD) got a vote of confidence from DA Davidson on Friday, with the firm citing the magnitude of rival Intel Corp.’s (INTC) earnings beat in the first quarter (Q1) as the reason for its bullish outlook.

According to TheFly, DA Davidson hiked its price target for AMD by 70% to $375 from $220. The firm also upgraded the stock to ‘Buy’ from ‘Neutral’.

AMD shares were up nearly 14% in Friday’s opening trade, with the stock on track for its best single-day gains in more than six months.

How Does Intel’s Performance Reflect On AMD?

DA Davidson stated in its note that the magnitude of Intel’s earnings beat in first quarter (Q1) indicates a structural increase in demand for central processing units (CPUs). The artificial intelligence technology and related infrastructure space have been dominated by graphics processing units (GPUs) so far, with Nvidia Corp. (NVDA) benefiting.

The firm stated that Intel’s performance shows that CPUs are “reinserting” themselves as an indispensable foundation of the AI era. AMD, a key rival to Intel in the CPU segment, could also benefit from this demand, according to DA Davidson.

The firm added that Intel’s results demonstrate there could be a “meaningful upside” to AMD’s estimates ahead of the latter’s Q1 earnings due May 5, 2026. DA Davidson also stated that this could be a precursor to a major step-up in AMD’s CPU franchise.

Intel and AMD are major CPU vendors with offerings across consumer devices, enterprise systems, and data centers.

Analysts at Stifel hiked their price target for AMD to $320 from $280 earlier this week, while maintaining a ‘Buy’ rating on the stock.

What Is Wall Street Expecting From AMD’s Q1?

Wall Street expects AMD to report earnings per share (EPS) of $1.28 in Q1, according to Fiscal.ai data, compared to $0.96 during the same quarter a year ago.

The consensus estimate for AMD’s Q1 revenue is $9.87 billion, an increase of nearly 33% from the year-ago period.

How Did Retail Traders React?

Retail sentiment on Stocktwits around AMD trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels. AMD was among the top trending tickers on the platform at the time of writing.

One user believes AMD stock is headed toward $400 and that there is nothing stopping it.

AMD stock is up 60% year-to-date, while INTC stock is up 121%. The S&P 500 ETF (SPY) is up 30% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 41%.

The iShares Core S&P 500 ETF (IVV) is up 30% during this period.

Also See: Dan Ives Compares Intel's Comeback To Rocky Balboa, Says AI Trade Is In Its Third Innings — 'You Follow The Capex, That's Where Investors Are'

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