Key Takeaways
- AMD stock is up 19% in the past week on an Oppenheimer upgrade, CoreWeave’s raised outlook and Nvidia CEO Jensen Huang’s resignation.
- The upgrades rest on AMD’s own numbers, and analysts expect its 2027 earnings to more than double.
- Nvidia’s turmoil adds little, since AMD’s CEO says demand already runs ahead of supply.
- At about its usual multiple, AMD looks like a buy on its own growth.
Advanced Micro Devices (AMD) stock is up 19% in the past week, mostly because Wall Street caught up to numbers AMD had already reported. CoreWeave (CRWV) raising its outlook and Nvidia (NVDA) losing its CEO added fuel.
Oppenheimer moved first
Before Monday’s open, Oppenheimer’s Rick Schafer upgraded AMD to Outperform with a $600 price target. He forecast 135% data center sales growth next year.
After Tuesday’s close, CoreWeave raised its 2026 revenue guidance to $13.0 billion – $13.3 billion and said it plans $37 billion – $39 billion of capital spending this year. The stock jumped 25% the next day, then gave most of it back. CoreWeave also expects up to $1.15 billion of interest expense in the fourth quarter alone, so how it funds that buildout is the question for its next report.
A new NVIDIA CEO won’t make AMD more chips
Nvidia announced on Thursday that Huang had resigned, a day after reports that its board was moving to oust him. William Blair upgraded AMD to Outperform that morning.
The upgrades stand on AMD’s own numbers. Third-quarter Data Center revenue grew 97% to $8.5 billion, and AMD guided fourth-quarter revenue to about $17 billion. Analysts expect normalized EPS to more than double in 2027:
Three months ago, that 2027 estimate was $15.33.
Nvidia’s troubles add much less. “It is true that demand is higher than supply,” AMD chair and CEO Lisa Su said on the third-quarter call. However shaken Nvidia’s customers are, a new boss there doesn’t add a single wafer to AMD’s supply.
TIKR tracks 54 analysts on AMD. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on AMD, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See AMD’s Analyst Ratings
A buy on its own growth
AMD’s forward P/E was 39x before Friday’s drop pulled it to about 35x. That’s right at its 5-year average and far below June’s 67x:
Analysts’ average price target is $659, 23% above Friday’s close.
The risk is what that growth costs. AMD has granted OpenAI and Meta warrants for up to 320 million shares, nearly 20% of its shares outstanding, which vest only as they buy AMD chips. OpenAI is also still burning cash.
Even so, AMD’s data center growth and rising estimates make it worth buying on their own, with Nvidia’s mess a bonus at most. The next test is fourth-quarter results in early February, the first full look at how fast Helios racks are ramping.
So what is AMD stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
