Stifel Raises AMD Price Target to $450
Stifel analyst Ruben Roy raised the price target on AMD (NASDAQ: AMD) to $450.00 (from $320.00) while maintaining a Buy rating.
“AMD reported a strong beat-and-raise quarter, with 1Q26 revenue of $10.3bn (+38% y/y), non GAAP gross margin of 55.0% (+170bps y/y), and non-GAAP EPS of $1.37 (+43% y/y), all above our estimates (~$9.8bn, ~54.5%, ~$1.25, respectively).
2Q guidance of ~$11.2bn (+46% y/y at mid) and ~56% gross margin also exceeded expectations (consensus ~$10.7bn, ~55.5%, $1.44), driven by accelerating Data Center momentum and strong y/y growth in the Client and Gaming segments as well as a return to y/y growth in Embedded.
Notably, management upgraded its server CPU TAM outlook from ~18% to >35% annual growth, with expectations of reaching over $120bn by 2030, reflecting the structural demand pull from inferencing and agentic AI.
With multi-gigawatt customer commitments expanding, Helios on track for 2H production, and Venice/6th Gen EPYC set to launch later this year, we continue to view AMD as entering a sustained multi-year growth cycle with increasing visibility.
Reiterate Buy.”
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