Evercore ISI has increased its price target for Advanced Micro Devices (NASDAQ:AMD) to $328.00 from $283.00 while continuing to rate the stock as Outperform. The research house based this revision on the company’s stated confidence in accelerating data center demand and recent quarter trends in GPU revenue metrics.
The firm’s action comes amid a mixed market reaction: AMD shares fell about 8% in after-hours trading following the company’s quarterly report, a period Evercore described internally as a "beat/raise" quarter. Market metrics cited by InvestingPro list AMD’s price-to-earnings ratio at 126.66 and its market capitalization at $394.17 billion. The stock carries a beta of 1.95, indicating it historically moves more sharply than the broader market.
Evercore highlighted management’s expectation that data center revenues can expand by more than 60% in 2026. The research note also pointed to GPU revenue trends, noting that GPU sales excluding China were up roughly 20% quarter-over-quarter in the December quarter. Those operational signals sit alongside AMD’s broader revenue performance, which has risen 31.83% over the trailing twelve months.
In addition to the company’s internal metrics, Evercore emphasized the adoption picture for AMD’s GPUs: eight of the top 10 artificial intelligence companies are using AMD GPUs, and the firm expects purchase commitments to grow materially each quarter through 2026. Those commitments, according to Evercore’s write-up, provide a level of visibility into demand for AMD’s data center products.
Evercore’s $328 target equates to 32 times its estimate for AMD’s 2027 earnings per share of $11.27, discounted back one year. That valuation framing is central to the firm’s view of future upside given the combination of forecasted earnings and continued data center traction.
AMD’s reported fourth-quarter results were stronger than consensus estimates referenced in the coverage. Revenue came in at $10.3 billion with an adjusted gross margin of 57.0% and adjusted earnings per share of $1.53. Those figures exceeded the analyst expectations cited by the coverage: $9.7 billion in revenue, a 54.5% gross margin, and $1.32 in earnings per share.
Following the quarter, other sell-side firms made a range of adjustments to their AMD targets and views. BofA Securities raised its price target to $280, pointing to AMD as a credible alternative AI GPU supplier to Nvidia. Truist Securities lifted its target to $283 on the company’s growth outlook. Raymond James moved its target to $365 but noted concerns about GPU sales to China despite acknowledging a strong fourth quarter and healthy guidance for the first quarter of 2026. Loop Capital reiterated a Buy rating with a $310 target, and Stifel maintained a $280 target, both reflecting confidence in AMD’s results.
Summary
Evercore raised AMD’s price target to $328 while keeping an Outperform rating, citing management guidance for more than 60% data center revenue growth in 2026 and sequential GPU revenue gains outside China. The firm’s valuation equates to 32 times its 2027 EPS estimate of $11.27 discounted back one year. AMD reported a better-than-expected fourth quarter with $10.3 billion in revenue, a 57.0% adjusted gross margin, and $1.53 in adjusted EPS.
Key points
- Evercore raised its price target to $328 and retained an Outperform rating, citing strong data center guidance and GPU trends.
- AMD reported Q4 results above consensus: $10.3 billion revenue, 57.0% adjusted gross margin, and $1.53 adjusted EPS.
- Multiple analysts adjusted their targets after the quarter, reflecting divergent views on market exposure, particularly around GPU sales to China.
Risks and uncertainties
- Market reaction - AMD’s shares fell about 8% in after-hours trading despite the quarter being characterized as a "beat/raise," illustrating potential short-term volatility in the semiconductor sector.
- Geographic exposure - Concerns around GPU sales to China were explicitly cited by at least one firm as a reason for revising targets, indicating regional demand risk for the AI hardware market.
- Valuation sensitivity - Evercore’s target implies a high multiple of future earnings, which could expose the stock to downside if revenue or margin trajectories deviate from current guidance.