AMD agrees to acquire World Labs as Rosenblatt keeps $700 target for AMD stock

Published on 10/06/2026 at 09:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

AMD stock costs EUR 564.90 on October 6, 2026 after EUR 562.95, plus 0.35 percent. Revenue reached USD 11.50 billion in the second quarter of 2026.

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AMD agreed to acquire World Labs in an all-stock transaction valued at USD 8.20 billion on September 28, 2026, according to AMD. As TradingPedia reported on October 5, 2026, Rosenblatt continues to rate the stock Buy with a USD 700.00 price target.

World Labs expands AMD AI strategy

The transaction gives AMD access to World Labs researchers working on spatial-intelligence models for interactive three-dimensional environments, robotics learning and simulation. Reuters reported on September 28, 2026 that AMD expects the research to help shape hardware, software and systems roadmaps for emerging AI workloads.

World Labs co-founder Fei-Fei Li is expected to join AMD as executive vice president and chief scientist after the transaction closes. The deal is expected to close by the end of 2026, subject to regulatory approvals, according to AMD.

Quarterly growth sets the next test

AMD reported USD 11.50 billion in revenue for the second quarter of 2026, up 50.00 percent from the second quarter of 2025, according to Silicon Analysts. Data Center revenue reached USD 6.70 billion, a 107.00 percent year-over-year increase, while non-GAAP earnings per share were USD 1.66.

The same second-quarter 2026 review lists third-quarter revenue guidance of USD 12.70 billion to USD 13.30 billion and non-GAAP gross margin guidance of 56.00 percent. Zacks lists November 3, 2026 as the estimated date for AMD's next earnings release, with a consensus estimate of USD 1.90 earnings per share, according to Zacks.

Valuation leaves little room

TradingPedia reported on October 5, 2026 that the average 12-month analyst target stood at USD 622.01, below a cited primary-market price of USD 629.15. The same report placed AMD's market capitalization near USD 1.04 trillion and identified valuation as a counterweight to the rapid revenue growth.

The Nasdaq quote was USD 631.75 on October 5, 2026 at 4:00 p.m. EDT, after the regular session. That foreign-currency quote is separate from the German investor reference price, which was trading at EUR 564.90 at Lang & Schwarz on October 6, 2026 at 9:05 a.m. CEST, plus 0.35 percent versus the Lang & Schwarz prior close of EUR 562.95 on October 5, 2026.

AI deal meets an earnings catalyst

AMD's World Labs agreement adds a strategic AI research asset, while the second-quarter figures provide the nearer operating benchmark. The USD 12.70 billion to USD 13.30 billion third-quarter revenue range is the next measurable test of whether data-center expansion can keep pace with the valuation embedded in AMD stock.

The further course of trading is shown by the continuously updated real-time quote of AMD stock.