Will AMD Stock Hit $500 This Year?

AMD is projected to reach $505.08 within 12 months, representing about 20% upside from roughly $420.99. The stock has surged sharply in 2026, including a major one-month move to a 52-week high near $469.22, followed by a pullback used as an entry point. Q1 2026 results showed revenue of $10.253 billion, non-GAAP EPS of $1.37, and Data Center revenue up 57% to $5.775 billion. Q2 guidance of $11.2 billion implies 46% year-over-year growth. The bullish outlook centers on AI infrastructure scaling, with server CPU TAM expected to grow more than 35% annually and large customer commitments supporting tens of billions in annual data center AI revenue in 2027. Risks include very high valuation multiples that leave limited room for error, potentially pulling the stock toward $380 if expectations fail.

"Our 24/7 Wall St. price target for AMD is $505.08 over the next 12 months, implying 19.98% upside from the current $420.99 quote. Our recommendation is buy with high confidence at 90%."

"Q1 2026, reported May 5, was the catalyst. Revenue hit $10.253 billion (+37.85% YoY), non-GAAP EPS came in at $1.37 beating expectations, and Data Center revenue exploded 57% to $5.775 billion. Q2 guidance of $11.2 billion implies 46% YoY growth."

"Lisa Su told investors on the Q1 call that AMD now sees the server CPU TAM growing at "greater than 35% annually, reaching over $120 billion by 2030." She added that customer forecasts for MI450 and Helios are "exceeding our initial expectations," supporting "tens of billions of dollars in annual Data Center AI revenue in 2027.""

"The bear case begins with valuation. AMD trades at a trailing P/E of 141 and an EV/EBITDA of 91, leaving little margin for error. Reddit sentiment has cooled"

Read at 24/7 Wall St.