AMD stock gets higher targets as data-center concentration rises
Published on 11/04/2026 at 16:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSHigher targets meet concentration risks
- Morningstar raised its fair value estimate, while Piper Sandler lifted its price target and maintained an overweight rating.
- Data-center revenue represented 64% of AMD's third-quarter revenue, increasing the importance of AI execution.
- Management expects data centers to exceed 80% of revenue in 2027 despite pressure in gaming and personal computers.
Advanced Micro Devices is entering a more demanding phase after strong third-quarter results prompted fresh analyst target increases while highlighting the company's growing dependence on data-center demand. AD HOC NEWS reported the revisions on Wednesday, November 4, 2026.
Morningstar raised its fair value estimate from 530 US dollars to 570 US dollars and kept its uncertainty rating at very high. Piper Sandler analyst David O'Connor increased his target from 600 US dollars to 650 US dollars and reaffirmed an overweight rating. Goldman Sachs had reiterated a buy rating and a 700 US dollar target one day earlier.
AI growth carries more weight
AMD posted record third-quarter revenue of 13.4 billion US dollars and adjusted diluted earnings per share of 2.09 US dollars. Data-center revenue rose 97 percent to 8.5 billion US dollars, making the segment the central driver of the investment case.
Data centers accounted for 64 percent of revenue in the quarter, compared with 47 percent a year earlier. Chief Financial Officer Jean Hu expects the segment to exceed 80 percent of revenue in 2027. The shift raises the upside from AI demand, but it also leaves less room for weakness elsewhere in the business.
Gaming revenue fell 40 percent to 773 million US dollars in the third quarter. AMD also expects a double-digit decline in personal-computer unit volumes across the market in 2027, while forecasting that Ryzen products and its commercial business will outperform.
Guidance raises the execution bar
Management expects fourth-quarter revenue of roughly 17 billion US dollars, plus or minus 3 percent, and an adjusted gross margin of about 55 percent. Chief Executive Lisa Su also projected total revenue growth of more than 80 percent for 2027. The forecast helped ease some concerns about the pace of artificial-intelligence spending, but it leaves delivery and margin execution at the center of the next investor debate.
AMD stock traded at 445.73 euros on Lang & Schwarz at 16:10 CET on Wednesday, November 4, 2026, 2.40 percent above the Xetra close of Tuesday, November 3, at 435.30 euros. The Xetra listing and timestamp are reported by De Belegger.
For investors, the expanded Meta partnership adds strategic reach, with Helios systems running at Meta and EPYC processors supporting its Muse artificial-intelligence agents. AMD also plans to invest 1 billion US dollars in Meta's stock offering, but the capital commitment remains distinct from the commercial contribution of the hardware relationship.
View the real-time quote of Advanced Micro Devices stock for the latest trading indication.
Broader technology sentiment remains relevant for semiconductor valuations; follow the S&P 500 market theme for the wider US market backdrop.
For more context on the company, see more news and analyses on Advanced Micro Devices stock.
Advanced Micro Devices
- ISIN: US0079031078
- Ticker: AMD
- Listing: Frankfurt (Xetra), EUR
- Lang & Schwarz price: 445.73 euros, November 4, 2026, 16:10 CET
- Change versus Xetra close: 2.40 percent above 435.30 euros on November 3, 2026
- 52-week range: 162.14 to 584.40 euros
- Sector: Technology
