AMD Stock Rises on Bernstein Raise and AI Demand
AMD stock rose after Bernstein raised its 12-month target as record EPYC and MI300 data-center demand boosted flows ahead of May 5 Q1 2026 earnings.
KEY TAKEAWAYS
- Q4 data-center revenue reached $5.4 billion, a company record driven by EPYC and MI300 sales.
- Q4 total revenue was $10.3 billion, topping the $9.7 billion estimate.
- Bernstein raised its 12-month target, and analyst consensus showed a $290 median price target.
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Advanced Micro Devices Inc. (AMD) shares rose on April 16, 2026, after Bernstein raised its 12-month price target, pushing the stock toward record levels ahead of the company’s Q1 2026 earnings report on May 5.
Data-Center Growth and Financial Results
AMD’s data-center revenue reached $5.4 billion in the fourth quarter of 2025, a 39% increase year-over-year and a company record, driven by sales of EPYC server processors and MI300 AI accelerators. Total revenue for the quarter was $10.3 billion, up 34% from a year earlier and above the $9.7 billion estimate.
For the full year 2025, AMD reported revenue of $34.6 billion, a 34% increase from 2024. Net income rose to $4.3 billion from $1.6 billion the prior year.
Management said the company entered 2026 with strong momentum led by EPYC and Ryzen processors and rapid growth in its data-center AI business. Consensus models project earnings per share rising from $6.64 in 2026 to $14.45 in 2028, with revenue potentially reaching about $85 billion.
Industry forecasts support this outlook. Gartner projects global semiconductor revenue will exceed $1.3 trillion in 2026, with AI-focused chips accounting for roughly 30% of the market.
Analyst Targets and Strategic Catalysts
Bernstein raised its 12-month price target on AMD, citing stronger server assumptions and the impact of a Meta AI deal. Analyst coverage remains positive, with 37 buy or strong-buy ratings, 12 holds, and no sell recommendations. The median price target is $290, with an average near $289.
EPYC server sales are a key growth driver. One analyst projects these sales could rise about 50% year-over-year in 2026.
AMD has expanded a multi-year collaboration with France on national AI initiatives, including work related to the Alice Recoque exascale supercomputer. The company also participated in a $60 million Series D financing round for U.K. autonomous-vehicle startup Wayve, alongside Arm and Qualcomm, reinforcing its AI positioning.
Some recent downgrades have raised concerns about valuation, execution risks, GPU competitiveness, and hyperscalers’ moves toward custom silicon.
Investors will focus on AMD’s Q1 results on May 5 to assess whether the data-center and AI momentum continues into 2026.
