Should You Buy Advanced Micro Devices (AMD) Stock Ahead of Tuesday Earnings? Wall Street Weighs In

Key Takeaways

• Susquehanna upgraded AMD’s price target to $375 from $300 while maintaining its Positive rating ahead of earnings
• Analyst Christopher Rolland anticipates robust Q1 performance fueled by server CPU market share expansion and MI350 AI chip traction
• Major contracts with OpenAI and Meta totaling 6GW each position AMD for significant hardware revenue starting 2H26
• The chipmaker releases Q1 2026 results on May 5; Wall Street forecasts $1.29 EPS and $9.89B in revenue
• Northland provided a contrasting view with a downgrade to Market Perform and $260 price target, highlighting analyst disagreement

Just days before Advanced Micro Devices reports quarterly results, Susquehanna analyst Christopher Rolland increased his price objective on the semiconductor giant to $375 from $300 on Wednesday. The firm maintained its Positive stance on AMD shares.

Advanced Micro Devices, Inc., AMD

Shares of AMD climbed approximately 1.6% during premarket hours following the announcement and finished the trading session up about 3.6%.

Rolland’s elevated price target stems from his optimism surrounding AMD’s expanding presence in the server CPU market and the accelerating adoption of its AI processing chips. He pointed to ongoing EPYC processor market share victories as Intel navigates ongoing supply chain challenges.

Regarding artificial intelligence hardware, the MI350 accelerator chip is positioned to bolster Data Center segment performance during the first six months of 2026. Rolland anticipates a more pronounced acceleration in Q4 2026, coinciding with the MI450 and Helios platform debut.

Two blockbuster partnerships support this projection. Both OpenAI and Meta have committed to 6-gigawatt hardware procurement agreements with AMD. Initial one-gigawatt deliveries for each partner are scheduled for the latter half of 2026. According to Rolland’s calculations, each gigawatt translates to approximately $15 billion in sales.

Oracle has similarly revealed intentions to construct a 50,000-GPU artificial intelligence supercluster powered by Helios architecture featuring Instinct MI450 GPUs paired with EPYC Venice CPUs.

Factoring in these partnerships and broader market adoption, Rolland projects AMD will capture $17 billion in GPU-related revenue during 2026. He emphasized that income from the OpenAI and Meta contracts will extend into 2027.

Server CPU Market Maintains Momentum

Recent industry research conducted by Rolland suggests a robust Q1 performance with sustained strength ahead. Demand originating from agentic AI applications is characterized as exceptional, while recent pricing adjustments could provide margin expansion opportunities.

Personal computer demand, conversely, is projected to underperform seasonal expectations throughout 2026. This represents a weaker element in AMD’s narrative, although the Data Center business remains the primary growth engine.

AMD finished trading at $323.21 on April 28, reflecting approximately 51% gains year to date. The stock currently carries a trailing P/E ratio of 123x and forward P/E of 50x — valuations that provide minimal margin for operational missteps.

Quarterly Results Take Center Stage

Analyst consensus projects Q1 earnings of $1.29 per share alongside revenue of $9.89 billion. AMD’s management previously guided toward roughly $9.8 billion, with a variance of $300 million, suggesting approximately 32% year-over-year expansion.

Management’s forecast incorporated about $100 million from MI308 chip sales to Chinese customers.

AMD delivered fiscal 2025 revenue of $34.64 billion, representing 34% growth. The Data Center division achieved record Q4 2025 revenue of $5.38 billion, climbing 39% versus the prior year. Annual free cash flow surged 129% to reach $5.52 billion.

Not all analysts share the optimistic perspective. Northland recently shifted its rating on AMD to Market Perform accompanied by a $260 valuation target, creating substantial divergence from Susquehanna’s $375 outlook.

Polymarket participants currently assign 76% probability to AMD surpassing its May 5 earnings expectations.

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