Will AMD Stock Keep Going Up? The Bull and Bear Cases
AMD stock has surged significantly this year, driven by strong data center sales and AI chip demand. However, analysts debate whether valuation concerns or robust customer momentum will dictate its future trajectory.
Can AMD stock continue its upward trajectory? While it is possible, much of the positive sentiment is already baked into the valuation. AMD concluded Friday at $630.63, marking a roughly 194% gain for the year, whereas the consensus analyst outlook remains relatively muted with an average price target of $618.51—sitting just below current trading levels. However, optimists like strategist Tony Zhang project a rise to $750 by November, while skeptics primarily focus on valuation concerns.
Will AMD Stock Keep Going Up? Bull Case, Bear Case And Target
Where AMD Stock Trades Right Now
According to Yahoo Finance, AMD finished Friday, Sept. 25, at $630.63 before slipping 1.89% to roughly $618.69 during early Monday overnight trading. The shares have surged 194.47% year-to-date, alongside a 107% jump in second-quarter data center sales to reach $6.7 billion. This leaves investors wondering whether AMD stock will maintain its momentum or if the easiest gains have already passed.
What AMD Management Expects
During the August earnings call, CEO Lisa Su noted:
“We now expect data center segment revenue to more than double year-over-year in 2027.”
She further added:
“We do expect the overall data center business to be well over 100%.”
Additionally, AMD issued third-quarter revenue guidance of approximately $13 billion, translating to roughly 41% growth. Delivering on these figures is crucial, as the 2027 stock forecast relies heavily on achieving 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 remarked:
“CPU demand is so high that we can only supply 50% of customers.”
Data from Mercury Research shows that AMD grew its server CPU market share to 34.5% in the second quarter, up from 27.3% during the same period last year, with expectations for the broader server CPU market to reach $220 billion by 2030. For those tracking the stock’s potential, this restricted CPU supply environment also creates opportunities for higher pricing.
The AMD Stock Bull Case And The $750 Target
As reported by 24/7 Wall St., Zhang’s $750 price target is tied to a 600/750 call spread, representing a bet on whether AMD can climb further ahead of November.
The primary catalyst behind this view is an unconfirmed report of a 10% price increase on AI chips, while the broader bull thesis is supported by massive gigawatt agreements with major clients like OpenAI, Meta, and Anthropic.
Lisa Su commented on this demand:
“Customer pull for Helios is very strong and tracking ahead of our initial forecasts.”
For bullish investors, the outlook remains positive as long as this robust customer demand persists.
The AMD Stock Bear Case
Conversely, cautious analysts point to a high beta of 2.48 and a heavy concentration of revenue dependent on a small group of major AI clients. Highlighting the competitive landscape, Nvidia CFO Colette Kress stated:
“We expect to grow revenue by approximately 70% in fiscal 2028. This is a supply-constrained outlook.”
Bears raise a critical concern: if hyperscale cloud providers decide to pull back on AI infrastructure spending, the stock’s upward momentum could stall.
AMD Stock Forecast: What To Watch Now
The upcoming earnings report, anticipated for November 3, serves as the next major catalyst. A timely launch of Helios would strengthen the outlook, supporting the 24/7 Wall St. perspective that a $750 price target might actually be conservative. On the other hand, the bear case hinges on the vulnerability of relying on a single major customer to slow down its purchasing pace.
Ultimately, can the stock maintain its rise? At present, it is entirely dependent on AMD successfully meeting its 2027 performance milestones.
