Advanced Micro Devices (AMD) Stock Soars 18% Following Stellar First Quarter Results

Key Highlights

• AMD shares rocketed more than 18% following first quarter results that crushed estimates, reporting $10.25B revenue and $1.37 EPS
• The datacenter segment delivered $5.78B in revenue, representing 57% year-over-year expansion fueled by robust server CPU sales
• Second quarter revenue guidance of $11.2B significantly exceeded the consensus forecast of $10.5B
• Major firms including Goldman Sachs and Bernstein elevated AMD to Buy ratings, establishing price objectives of $450 and $525
• Major AI players OpenAI and Meta revealed strategic collaborations with AMD, committing to deploy 6 gigawatts of AMD GPU infrastructure

Shares of Advanced Micro Devices rocketed more than 18% higher midweek following the chip giant’s release of first quarter financial results that significantly exceeded analyst projections on all key metrics.

Advanced Micro Devices, Inc., AMD

The semiconductor company delivered quarterly revenue totaling $10.25 billion, surpassing the Street’s expectation of $9.9 billion. Per-share earnings reached $1.37, comfortably ahead of the $1.28 analyst consensus.

Shares were changing hands near $421 during Wednesday’s trading session, representing a substantial jump from approximately $355 at the previous day’s close.

The datacenter business segment stole the spotlight, generating $5.78 billion in revenue — marking a 57% increase compared to the same period last year. Robust demand for server processors represented the main catalyst behind this growth.

Looking toward the second quarter, AMD issued revenue guidance of $11.2 billion. This forecast sits well above Wall Street’s collective estimate of $10.5 billion. The company anticipates datacenter revenues will expand by double-digit percentages sequentially, while server CPU revenue is projected to surge more than 70% on a year-over-year basis.

Trading activity reflected intense investor interest. Over 54 million AMD shares exchanged hands Wednesday, substantially exceeding the three-month average daily volume of approximately 32.47 million.

Wall Street Analysts Rush to Upgrade

Goldman Sachs elevated AMD to a Buy rating while simultaneously raising its price objective to $450 from a previous $240. Covering analyst James Schneider highlighted agentic artificial intelligence as a long-term structural growth driver for AMD’s server CPU operations, characterizing the company as an “outsized beneficiary” of enterprise AI technology adoption.

Bernstein upgraded its stance on AMD to Outperform from Market-Perform, simultaneously boosting its price target from $265 to $525. Analyst Stacy Rasgon’s updated financial models project AMD generating over $14 in earnings per share by 2027, with potential to approach $20 per share in 2028.

Rasgon emphasized that AMD’s total addressable market perspective has effectively doubled, with company leadership now forecasting a 35% compound annual growth rate extending through 2030, ultimately reaching approximately $120 billion in market opportunity.

Seaport Research analyst Jay Goldberg shifted his recommendation to Buy from Neutral while establishing a $430 price target, citing accelerating CPU demand combined with an increasingly favorable GPU business outlook for the coming year.

Raymond James maintained its Buy recommendation while elevating its target to $455 from $365. Robert W. Baird took an even more aggressive stance, raising its objective to $625 from $300. DBS reaffirmed its Buy rating with a $500 target price.

Strategic GPU Collaborations Enhance Growth Narrative

Both OpenAI and Meta have publicly announced strategic collaborations with AMD focused on deploying 6 gigawatts of AMD GPU computing infrastructure. Goldman Sachs specifically highlighted the Meta partnership as exceptionally significant.

Bernstein analysts noted that AMD’s two anchor GPU customers are “set to ramp into year-end,” adding that these deployment figures haven’t been completely incorporated into current Street financial models.

Seaport additionally pointed out that AMD successfully secured better-than-anticipated chip allocation capacity from manufacturing partner TSMC, which should provide support for near-term product supply requirements.

Rosenblatt Securities analyst Kevin Cassidy, recognized as the top-rated analyst covering AMD, maintains an 80% accuracy rate over the trailing three months with an average return of 31.79% per rating issued. Extending to a two-year timeframe, his success rate reaches 100% with an average return of 191.49%.

AMD’s year-to-date performance now reflects a gain of 94.47%, with shares climbing 253.99% over the trailing twelve-month period.