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AMD Price Target Soars to $800!
29 Oct
Summary
- Aletheia Capital raises AMD price target to $800.
- AMD stock year-to-date return is 161.6%.
- Data center revenue expected to double by Q4 2026.
Aletheia Capital has increased its price target for Advanced Micro Devices (AMD) shares to $800 from $700, reaffirming a Buy rating. The firm's upward revision is based on a sum-of-the-parts valuation, projecting a 24 times fiscal 2027-2028 price-to-earnings ratio. This outlook is supported by enhanced supply chain assistance, a competitive product lineup, and exceptionally strong demand for server CPUs and AI compute.
The analyst firm anticipates these positive trends will begin manifesting as early as the fourth quarter of 2026. During this period, data center revenue is expected to more than double year-over-year. Aletheia Capital forecasts AMD's data center business will triple in 2027, driven by substantial growth in server CPUs and GPUs.
Furthermore, the firm projects fully diluted earnings per share to triple year-over-year in fiscal 2027 and increase by another 80% in fiscal 2028, resulting in over a fivefold increase within three years. These estimates significantly exceed current consensus, with analysts anticipating sales growth of 47% in the current year. AMD was recently added to Aletheia Capital's Alpha Portfolio.
