AMD Joins Nvidia in Trillion-Dollar Club with Strong Earnings and Guidance

AMD has joined Nvidia in the trillion-dollar club after experiencing a 25% weekly surge in its stock price. The Data Center revenue for AMD doubled to $6.7 billion, and management guided Q3 to roughly $13 billion.

The valuation of AMD has pushed 24/7 Wall St.'s HOLD target to $522, which is some 14% below the current price of $616.69. Lisa Su projects Data Center revenue to more than double in 2027, with Anthropic deploying 2 gigawatts of MI450 GPUs.

Bulls have a legitimate roadmap for AMD's growth, as Lisa Su expects server revenue to grow more than 80% year-over-year in the second half of 2026 and the Data Center segment to more than double in 2027. If Helios ramps cleanly and forward EPS re-rates toward $12-$14, upside in the $697 to $720 range becomes reasonable.

However, there are potential headwinds for AMD's growth, including a bearish path that lands near $407 due to elevated capex reflecting the Instinct ramp and free cash flow growing 129.48% in FY25.