Advanced Micro Devices just got a fresh vote of confidence from one of Wall Street‘s most accurate stock pickers, even as the chip giant’s shares took a beating after earnings.
JPMorgan analyst Harlan Sur raised his price target on AMD (AMD) to $550 from $385 recently, according to a research note reviewed by TradingView.
Sur ranks number 15 out of 12,453 Wall Street analysts tracked by TipRanks, with a 71% success rate and an average return of 43.40% per rating.
Sur maintained his “Neutral” rating on the stock even as he raised the stock price target.
He told investors that AMD delivered another beat-and-raise quarter compared to consensus expectations, though the September quarter guidance landed modestly below what buyside investors were hoping for.
The bigger story, in his view, is what happens next.
AMD is part of the AI megatrend
AMD is among the most popular AI stocks globally.
The company makes Instinct, its lineup of AI accelerators that compete directly with Nvidia‘s GPUs, along with Epyc server processors that power much of the world’s cloud and enterprise computing.
Down almost 20% from all-time highs, AMD stock has returned over 300% in the last three years.
In this period, AMD has increased market share in the AI chip segment, while the CPU business rides a second wave of demand tied to AI agents.
That combination, GPUs for training and inference plus CPUs to run the agents around them, is what Sur pointed to when he raised his AMD stock price target.
Sur’s note said data center growth is positioned to outpace overall AI infrastructure spending in 2027 significantly.
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That’s a notable call, since it suggests AMD’s data center business could grow faster than the broader AI buildout itself.
AMD CEO Lisa Su made a similar point on the company’s July earnings call, stating:
“We now expect data center segment revenue to more than double year over year in 2027.”
Su also told analysts that both the server CPU business and the AI accelerator business are set to be major growth drivers going forward, saying, “Both businesses are very significant drivers of our 2027 growth and beyond.”
AMD stock sinks despite consensus beat
AMD’s second quarter results, reported in early August, beat consensus estimates. According to a CNBC report, AMD posted:
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Adjusted earnings of $1.66 per share versus the $1.62 expected.
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Revenue of $11.54 billion, above estimates of $11.28 billion.
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Total revenue climbed 50% from a year earlier.
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Data center sales, AMD’s biggest growth engine, jumped 107% year over year to $6.7 billion, driven by both CPU and GPU demand.
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AMD forecast roughly $13 billion in third quarter revenue, plus or minus $300 million.
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That was ahead of the $12.52 billion analysts expected, but below the $14 billion some had hoped for.
