AMD Stock Forecast & Price Target

Advanced Micro Devices (AMD) is projected to experience significant earnings growth, with estimated earnings per share (EPS) rising from $5.83 to $6.15 in calendar year 2026 and further increasing to $9.25 from $7.89 in calendar year 2027. The company's strategic partnerships, particularly with AI projects like OpenAI, are expected to enhance revenue significantly beginning in the second half of 2026, potentially driving further market engagement and share gains. AMD's growing presence in the CPU market as a viable alternative to Intel and its evolution into the AI GPU space suggest a robust structural growth trajectory, especially with the anticipated high accretive impact on Non-GAAP EPS from these initiatives.

The analysis highlights critical challenges facing Advanced Micro Devices (AMD), indicating potential revenue declines due to execution failures in product delivery, which could result in the loss of customers. Furthermore, macroeconomic uncertainties, including the possibility of a global economic slowdown stemming from events such as COVID-19, pose significant threats to the semiconductor industry's overall stability, affecting AMD's revenue streams. Lastly, projected modest gross profit margin dilution from datacenter GPU sales suggests that AMD's profitability might weaken in comparison to its competitors, raising concerns about its future earnings potential.