Roth MKM Reiterates Buy on AMD, $650 PT
Roth MKM analyst Suji Desilva reiterated a Buy rating and $650 price target on AMD (NASDAQ: AMD).
“Multi-Quarter Data Center Growth Expected Across GPU and CPU Maintain Buy.
AMD guided 3Q26 revenue of $13bn +/- $300m (+10-15% q/ q) ahead of consensus expectations at $12.5bn driven by a continued EPYC CPU demand coupled with initial AMD Instinct Helios contribution at lead customer ramps.
Management called out a very strong CY27 data center growth expectation with server CPU expected to grow 70+% y/y with resurgent AI demand driven by increased agentic AI and inference infrastructure buildout.
When layering on newer ramp of the company’s Instinct Helios platform for lead AI infrastructure customers, the company expects overall data center segment revenue to more than double y/y in CY27.
We believe this strong growth trajectory reflects the differentiated strength of the company’s server products portfolio across CPU and AI, with Helios flexibility around various AI workload appealing to lead customers OpenAI, Anthropic, and Meta (META-Buy).
While gross margin will depend on the final mix, we are encouraged that margin-accretive CPU revenue is growing as well as slightly below corporate-margin AI GPU revenue. We maintain our Buy rating.”
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
