AMD Stock Analysis: Bullish Outlook Amid AI Boom
Advanced Micro Devices (AMD) is emerging as a top stock following a strategic $6 billion partnership with OpenAI for MI450 GPUs, propelling shares up by 35%. Despite concerns over post-rally pullbacks, AMD’s valuation maintains strength, supported by a burgeoning AI accelerator market projected to surpass $400 billion by 2027. Analysts have upgraded AMD’s Data Center revenue expectations for 2027 by over 23%, anticipating a significant growth from $16 billion in 2025 to $22.9 billion by 2026 due to high-margin AI products.
With a forward PEG ratio of 1.48 and a forecasted EPS surge of 60% to $6.30 by 2026, AMD is positioned as a strong buy. Stock price estimates suggest potential growth to $300 or even $350, marking a 50% upside. Wall Street remains optimistic, granting AMD a Moderate Buy consensus, indicating compelling risk/reward dynamics for investors capitalizing on AI advancements.
