As Intel Begins Big Rally in Semiconductor Companies, DA Davidson Raises Its Price Target on AMD by More Than 70%
DA Davidson’s Gil Luria spent a long time watching Advanced Micro Devices (AMD) from the bleachers before deciding it was time to get off the phone. He jumped his rating from “Neutral” to “Buy” and raised his price target from $220 to $375, a 70.5% jump that has earned its place as one of the boldest calls Wall Street has used this year.
AMD stock took the praise and ran with it on Friday, April 24, gaining 13.9% on the day to record a new 52-week high of $352.99. Luria boosted his $375 target by 32 times for calendar year 2027 EPS and simultaneously breached his 2026 revenue estimate by $2 billion and his gross profit estimate by $1.5 billion, clearing both the Wall Street consensus and Advanced Micro’s guidance by a comfortable margin.
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Intel Corporation (INTC) gave Luria the smoking gun. Intel’s Q1 2026 financial report showed revenue of $13.6 billion, clearing the middle of its guidance by $1.4 billion almost entirely after a hot increase in demand for server Central Processing Unit (CPU).
The plot is structurally robust because artificial intelligence (AI) workloads are moving from training to understanding, agent AI, and multi-agent computing, pulling the Graphics Processing Unit (GPU)-to-CPU ratio from about 8:1 all the way to parity.
Luria drew a straight line from Intel’s windfall to Advanced Micro’s opportunity, noting that while Intel adds about $2.5 billion a year in CPU power alone, AMD commands the same headroom.
He also pointed out that the need that goes before the hands of providing Advanced Micro is the leverage to increase the prices in all its portfolios and finally put the margin opponents to rest. With demand running miles ahead of delivery and the CPU era making a full comeback, Luria’s note tells margin skeptics to update their spreadsheets.
About Advanced Micro Stock
Headquartered in Santa Clara, California, Advanced Micro Devices is a global semiconductor powerhouse that designs high-performance CPUs, GPUs, and AI accelerators for a living.
Advanced Micro’s product bench is deep, covering Ryzen processors, Radeon graphics, EPYC server chips, Field-Programmable Gate Arrays (FPGAs), and Adaptive System on a Chip (SoCs), giving the company a foot in nearly every door worth knocking on in the entire computing world, while sitting comfortably atop an estimated $567 billion market.
Shares of Advanced Micro have been on a tear over the past 52 weeks, rising 244.9%. The momentum built up to 2026, the stock is up 55.65% year-to-date (YTD) and surged 65% in the last month.
The last five trading sessions alone have added 21.24% to the ticker, riding the coattails of a hot analyst with a keen market eye.
AMD stock currently trades at 52.82 times adjusted earnings and 12.12 times sales, both figures sitting at the top not only of the broader industry but also of the company’s five-year average. It shows that the market has a large amount of optimism about the future direction of AMD stock.
Advanced Micro Exceeds Q4 Profits
Advanced Micro entered the Feb. 3 with Q4 earnings for fiscal 2025 that made Wall Street double take. Revenue increased 34.1% year-over-year (YOY) to $10.3 billion, beating analyst estimates of $9.7 billion. Adjusted EPS beat 40.4% over last year’s figure to $1.53, well beating Street forecasts of $1.32.
The Datacenter segment carried the heaviest burden, swelling 39% YOY to $5.4 billion and proving once again that the use of AI infrastructure shows no signs of pumping the brakes.
Every part of the business has pulled its weight on the table. The Embedded segment, the slowest horse in the stable, continued to trudge forward 3% YOY to $950 million, which is expected to pick up momentum as the year progresses. The Client and Gaming segment threw its hat firmly into the ring with a sharp rise of 37% to $3.9 billion.
Non-GAAP operating income was up 40.9% from last year’s figure to $2.9 billion. Non-GAAP net income led the way and grew 41.8% YOY to $2.5 billion. Free cash flow increased 90.2% to $2.1 billion in the year-ago quarter, and adjusted EBITDA came in at $3 billion, up 38.7% from the same quarter last year.
Advanced Micro’s Q1 2026 earnings report, penciled in on Tuesday, May 5, after the market closed, now sits atop every semiconductor watcher’s calendar as one of the industry’s most anticipated releases.
Management has called for revenue for Q1 of fiscal 2026 of about $9.8 billion, give or take $300 million. The midpoint of that range marks YOY growth of around 32% and a sequential decline of around 5%, while non-GAAP gross margin is expected to hold around 55%.
On the other hand, analysts tracking the stock see Q1 fiscal 2026 EPS growing 33.3% YOY to $1.04. They put their outlook on the line for the full fiscal year 2026 to rise 76.8% to $5.78, followed by another 59.2% rise to $9.20 in fiscal 2027.
What Are Analysts Expecting About Advanced Micro Stock?
AMD stock continues to find strong support on the Street. Investment firm Stifel Nicolaus joined in along with DA Davidson. Analyst Ruben Roy raised his price target to $320 from $280 and maintains a “Buy” rating, reflecting confidence that demand for AI infrastructure will continue to run ahead of expectations and fuel steady growth.
Wall Street stamped AMD stock with an overall rating of “Strong Buy.” A total of 45 analysts weigh in, where 32 issued “Strong Buy” calls, two lean to “Neutral Buy,” and 11 choose to remain cautious with “Hold” ratings.
The stock is already trading above its average price target of $290.80, indicating momentum did not wait for a consensus to be reached. Finally, the Street-High target of $380 points to a 13.12% gain from current levels, reinforcing the view that optimism about AI-driven growth still has room to run.
As of the date of publication, Aanchal Sugandh did not have (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
