Will AMD Stock Keep Going Up? The Bull and Bear Cases

Can AMD stock maintain its upward trajectory? While possible, much of the positive momentum is already factored into the valuation. AMD concluded Friday’s session at $630.63, marking an increase of approximately 194% for the year. Meanwhile, analyst projections remain relatively subdued, establishing an average price target of $618.51—just beneath current trading levels. However, market bulls like strategist Tony Zhang anticipate shares reaching $750 by November, whereas skeptics remain cautious primarily due to valuation concerns.

Will AMD Stock Keep Going Up? Bull Case, Bear Case And Target

Where AMD Stock Trades Right Now

As reported by Yahoo Finance, AMD finished Friday, Sept. 25, at $630.63 before slipping roughly 1.89% to $618.69 during early Monday overnight trading. The company’s shares have advanced 194.47% year-to-date, accompanied by a 107% surge in second-quarter data center sales, which reached $6.7 billion. This begs the question: will AMD stock continue to climb, or has the easiest financial gain already passed?

What AMD Management Expects

During the August earnings call, CEO Lisa Su remarked:

“We now expect data center segment revenue to more than double year-over-year in 2027.”

Additionally, she noted:

“We do expect the overall data center business to be well over 100%.”

Furthermore, AMD projected third-quarter revenue to land near $13 billion, indicating roughly 41% growth. Fulfilling these objectives is crucial, seeing as the 2027 AMD stock forecast relies heavily upon them.

Also Read: AMD Has Not Split Its Stock Since 2000: Is One Coming Now?

Intel’s CPU Shortage Could Help AMD

At a Splunk conference in Denver, Intel CEO Lip-Bu Tan acknowledged:

“CPU demand is so high that we can only supply 50% of customers.”

According to Mercury Research, AMD grew its server CPU market share to 34.5% in the second quarter, up from 27.3% during the same period last year. Furthermore, the company anticipates the server CPU market to reach $220 billion by 2030. For observers wondering if AMD stock will keep rising, this constrained CPU landscape also creates opportunities for higher pricing power.

The AMD Stock Bull Case And The $750 Target

As 24/7 Wall St. pointed out, Zhang’s $750 target is tied to a 600/750 call spread, essentially wagering on whether AMD stock can sustain its ascent ahead of November.

His primary catalyst stems from unconfirmed reports of a 10% price hike on AI processors, though AMD has yet to verify this. Furthermore, the optimistic outlook relies on major gigawatt agreements with clients like OpenAI, Meta, and Anthropic.

Lisa Su observed:

“Customer pull for Helios is very strong and tracking ahead of our initial forecasts.”

For optimistic investors, the outlook for continued growth remains positive as long as this level of customer demand persists.

The AMD Stock Bear Case

Conversely, the bearish perspective highlights a beta of 2.48 alongside a heavy dependence on a select group of major artificial intelligence clients. Referencing market conditions, Nvidia CFO Colette Kress noted:

“We expect to grow revenue by approximately 70% in fiscal 2028. This is a supply-constrained outlook.”

Skeptics pose a different inquiry: can AMD maintain its upward trajectory if major hyperscalers decide to pull back on AI expenditures? Their conclusion is negative.

AMD Stock Forecast: What To Watch Now

The upcoming earnings announcement, slated for November 3, serves as a critical benchmark. Should Helios launch on schedule, the outlook brightens, supporting the 24/7 Wall St. perspective that a $750 target might actually prove conservative. On the other hand, the bearish argument requires just one major client to decelerate procurement orders to alter the narrative.

Ultimately, can AMD shares keep moving upward? At present, continued growth is achievable, provided the company successfully meets its targets for 2027.

?अक्सर पूछे जाने वाले प्रश्न

01What is the current price target for AMD stock?

The average analyst price target sits at $618.51, while some bulls like Tony Zhang have set targets as high as $750 by November.

02What are the main drivers for the AMD bull case?

The bull case is driven by strong data center sales, growing server CPU market share, potential AI chip price increases, and high customer demand for products like Helios from major tech companies.

03What risks do bears point out for AMD stock?

Bears highlight high valuation, a high beta of 2.48, heavy reliance on a few large AI customers, and the potential risk of hyperscalers pausing their AI spending.