AMD shares traded near $396 after a rapid rally driven by a strong Q1 2026 report and hyperscaler customer momentum. Q1 2026 revenue reached $10.25 billion, up 38% year over year, and non-GAAP EPS of $1.37 beat consensus. Data Center revenue rose 57% to $5.78 billion, and Q2 2026 guidance of $11.2 billion at the midpoint implied 46% growth. Citi raised its price target to $460, citing an agentic CPU total addressable market expected to exceed $120 billion by 2030. Potential upside catalysts include faster MI450 ramp, hyperscaler GPU expansion, EPYC share gains, and continued growth in Data Center AI demand.
"Advanced Micro Devices' Q1 2026 report on May 5 cleared the bar with conviction. Revenue hit $10.25 billion, up 38% year over year, while non-GAAP EPS of $1.37 beat the $1.29 consensus. Data Center revenue surged 57% to $5.78 billion, and Q2 2026 guidance landed at $11.2 billion at the midpoint, implying 46% growth. Advanced Micro Devices CEO Lisa Su called it "a clear inflection in our growth trajectory and a structural shift in our business.""
"On May 18, Citi raised its AMD price target to $460 from $358, maintaining a Neutral rating. The core thesis was the agentic CPU total addressable market (TAM), which Su sized aggressively on the call. Management now expects the server CPU TAM to grow at greater than 35% annually, reaching over $120 billion by 2030. Su added that Advanced Micro Devices feels "very good about the market and our opportunity to grow to greater than 50% share" of that pool."
"First, the MI450 ramp. Su noted customer forecasts are "above our initial plans that we had planned for 2027", with a path to exceed the prior 80% CAGR target for Data Center AI. Second, hyperscaler expansion. The Meta Platforms ( NASDAQ:META) partnership covers up to 6 gigawatts of AMD Instinct GPUs, layered on top of the previously announced OpenAI deal. Third, EPYC server share gains, with Q2"
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