Summary of the update
Truist Securities has raised its price target for Advanced Micro Devices Inc. (AMD) to $283 from $277 and maintained a Buy rating on the semiconductor maker. At the time of Truist’s action, AMD was trading at $242.11 and has produced a 102.6% return over the last 12 months, with analyst price targets spanning from $210 to $380.
Fourth-quarter results and guidance
Truist pointed to AMD’s fourth-quarter results, which exceeded expectations, and to first-quarter guidance that came in higher than anticipated. The firm highlighted that roughly 65% of the company’s revenue beat and the entirety of the earnings beat in the fourth quarter were attributable to the sale of a written-down China SKU.
AMD reported fourth-quarter earnings per share of $1.53, comfortably above the analyst consensus of $1.32, and revenue of $10.3 billion versus an expected $9.64 billion. The data center segment was a key driver of the quarter, increasing 24% sequentially and 39% year-over-year.
Top-line momentum and guidance details
According to InvestingPro data referenced by analysts, AMD’s revenue climbed 31.83% over the trailing 12 months, and sell-side forecasts anticipate continued sales growth in the coming year. AMD reiterated a data center compound annual growth rate of 60% and a total sales compound annual growth rate of 35% going forward.
However, Truist’s note also called attention to a projected 7% rise in operating expenses reflected in the first-quarter outlook. The firm said that this increase offsets some of the upside from revenue and gross profit margin improvements.
Valuation and earnings trajectory
Truist expressed a bullish view on AMD’s earnings trajectory, modeling roughly a 45% compound annual growth rate in earnings per share through 2030. Based on that 2030 earnings power, Truist estimates AMD is trading at approximately 11 times those projected earnings. The firm raised its 2027 EPS estimate to $10.11 from $9.25. The new $283 price target is derived from applying a peer-equivalent multiple of 28 times to its forward estimates.
Other recent analyst moves
Several other brokerages adjusted their views or targets following AMD’s quarterly report and guidance. Piper Sandler reiterated an Overweight rating and kept a $300 price target, citing the strong quarterly performance and revenue guidance that exceeded consensus by more than $380 million for the upcoming quarter. KeyBanc Capital Markets also raised its price target to $300, pointing to robust growth in data center operations. Bernstein raised its target to $235, citing healthy server trends and continued client share gains. In contrast, Goldman Sachs retained a Neutral rating with a $210 price target and noted that higher-than-expected operating expenses could offset the benefits of stronger revenue and guidance.
Context and implications
Taken together, the analyst updates reflect continued momentum at AMD driven by its data center business and stronger-than-expected quarterly results and guidance. Truist’s upgrade in its price target and EPS outlook underscores the firm’s expectation for sustained earnings growth, even while it flags the effect of rising operating expenses in the near term.
Limitations: The analysts’ commentary emphasizes modeled growth rates, peer-equivalent multiples, and company-provided guidance; these are forward-looking assumptions made by the firms and are included here only as reported in the analysts’ published notes.