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Advanced Micro Devices Inc. (NASDAQ:AMD) gave Wall Street plenty of reasons to raise numbers after its third-quarter report, and five analyst firms responded with fresh estimates and mostly bullish ratings.

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The chipmaker posted third-quarter revenue of $13.38 billion, up 45% year over year and ahead of the $13.09 billion consensus. Adjusted earnings of $2.09 per share topped the $1.95 estimate. Data Center sales jumped 97% to $8.55 billion, while Gaming fell 40% to $773 million as the console cycle matured.

Guidance did most of the work. AMD expects fourth-quarter revenue of $16.49 billion to $17.51 billion, versus consensus near $16.2 billion. Management also called for 2027 revenue growth above 80%, with server CPU sales roughly doubling and Data Center making up more than 80% of total revenue.

Cantor Fitzgerald: Intel Fears Fade

Cantor’s C.J. Muse reiterated an Overweight rating and $700 price target, keeping AMD as a Top Pick.

"A beat and raise following Intel’s report last week was probably not on many investors’ bingo cards," Muse wrote.

Muse expects AMD’s server CPU business to top $37 billion in 2027 and surpass Intel Corp.’s (NASDAQ:INTC) server CPU business. He initiated a 2028 EPS estimate of $28, well above the $23 consensus, and sees stretch targets of $20-plus and $30-plus for 2027 and 2028.

D.A. Davidson: Venice Demand Builds

D.A. Davidson analyst Gil Luria kept a Buy rating and raised his price target to $600 from $550, based on 35 times 2027 EPS. He zeroed in on Venice, AMD’s sixth-generation EPYC server processor. OEM and ODM partners have committed to more than 240 Venice platforms, 20% more than the prior Turin generation.

Luria noted management said Venice delivers "better performance per watt, performance per core, and performance per dollar than any other x86 or ARM server CPU."

RBC Capital Markets: Strong Quarter, Full Price

RBC’s Srini Pajjuri stayed on the sidelines with a Sector Perform rating and $540 target, now based on 30 times 2027 EPS, down from 32 times. He lifted his 2027 EPS estimate to $18.30 from $16.71.

"At 28x CY27E EPS, valuation is at a ~25-100% premium to GPU/XPU peers, which we think makes risk/reward balanced," Pajjuri wrote.

He did flag one shift from the earnings call with management. AMD’s AI customers now want to buy its products outright on total cost of ownership, moving past the warrant-dependent stage of earlier deals.

Rosenblatt Securities: Beating Its Own Forecasts

Rosenblatt analyst Kevin Cassidy maintained a Buy rating and $700 target, though he cut his multiple to 25 times 2028 EPS from 35 times. His 2027 EPS estimate climbed to $17.50 from $13.91.

"AMD is substantially outperforming management’s prior forecasts," Cassidy wrote. He pointed to OpenAI picking EPYC processors as host CPUs for its first custom accelerator platforms, along with AMD’s planned acquisitions of inference chip developer Taalas and World Labs.

Wedbush: Supply Is the Only Brake

Matt Bryson reiterated an Outperform rating and $600 target, equal to about 36 times his 2027 EPS estimate plus net cash. He raised his 2027 EPS forecast to $16.63 from $14.75.

Bryson sees the report as a positive read for memory and storage names, including Micron Technology Inc. (NASDAQ:MU), SanDisk Corp. (NASDAQ:SNDK), Seagate Technology Holdings PLC (NASDAQ:STX) and Western Digital Corp. (NASDAQ:WDC). Component availability, rather than demand, is gating AMD’s shipments.

He also played down PC weakness, as AMD plans for a double-digit drop in industry PC units next year. Bryson wrote that "client sales have less and less bearing on AMD’s revenue trajectory."

GAAP EPS of $1.46 included a $1.1 billion non-cash charge tied to customer warrants, which Bryson noted will not affect adjusted results or free cash flow.

The Takeaways

Every analyst raised estimates after the report, and four of the five rate AMD a Buy or its equivalent.

Where they differ is on price, with RBC viewing the stock as fairly valued after its run while Cantor and Rosenblatt see 2028 earnings power supporting $700.

Supply may matter most from here. AMD has locked in the wafers, substrates, packaging and memory needed for its current plan, yet demand still runs ahead of what it can ship, so a smooth Helios ramp in the fourth quarter would give the bulls their next proof point.

AMD Stock Price Activity: Advanced Micro Devices shares are trading higher by 0.08% at $484.30 at the time of publication on Wednesday, according to Benzinga Pro data.

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