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Bernstein Boosts AMD Target, Eyes Strong 2027
16 Apr
Summary
- Bernstein raised AMD's price target to $265, citing stronger server and Meta AI deal assumptions.
- New 2027 revenue projections reach $76.7 billion, significantly exceeding consensus estimates.
- Despite a high current stock price, AMD maintains a low PEG ratio of 0.59.
Bernstein SocGen Group has increased its price target for Advanced Micro Devices (AMD) to $265 from $235, while maintaining a Market Perform rating. This adjustment reflects updated assumptions for robust server growth and more conservative PC market expectations, now projecting EPYC sales to increase by approximately 50% year-over-year in 2026.
The revised target incorporates the Meta AI deal, which current consensus estimates appear not to fully price in. For 2027, Bernstein now forecasts AMD's revenue at $76.7 billion with earnings per share of $13.23, a significant increase from prior estimates and well above the consensus of $67.5 billion and $11.02.
Despite AMD's remarkable 192% gain over the past year and its current trading price near a 52-week high, the company exhibits a low PEG ratio of 0.59. This metric suggests the stock may be overvalued according to InvestingPro metrics, though Bernstein highlights that consensus may be underestimating AMD's future AI revenue potential.
In related news, other analysts maintain positive outlooks. Erste Group upgraded AMD to Buy, citing strong data center demand and improved profitability. Aletheia Capital also reiterated a Buy rating, emphasizing AMD's growing significance in the AI compute market, with AMD anticipating 32% year-over-year revenue growth in Q1 2026.
