Analyzing the Bull and Bear Cases for AMD Stock’s Future

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 a roughly 194% gain for the year. Meanwhile, analyst projections remain relatively subdued, with a consensus average price target of $618.51—slightly under the current trading level. Optimists like strategist Tony Zhang anticipate shares reaching $750 by November, whereas skeptics focus heavily 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 approximately $618.69 during early Monday overnight trading. The equity boasts a year-to-date increase of 194.47%, accompanied by a 107% surge in second-quarter data center sales, which reached $6.7 billion. This raises the central question: will AMD stock keep climbing, or has the low-hanging fruit already been harvested?

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.”

She further added:

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

Furthermore, AMD provided third-quarter revenue guidance of roughly $13 billion, indicating approximately 41% growth. Delivering on these figures is paramount, as the 2027 AMD stock forecast relies heavily on these projections.

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 held in Denver, Intel CEO Lip-Bu Tan stated:

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

Data from Mercury Research indicates that AMD’s server CPU market share expanded to 34.5% in the second quarter, up from 27.3% during the same period last year. Additionally, AMD projects the total addressable server CPU market will reach $220 billion by 2030. For observers wondering if AMD stock will keep rising, a restricted CPU supply environment also creates greater pricing power.

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 strategy, functioning essentially as a wager on whether AMD shares can advance prior to November.

The primary catalyst behind this outlook is an unconfirmed report of a 10% price hike on artificial intelligence chips. Additionally, the bullish argument draws strength from large-scale gigawatt agreements established with major entities including OpenAI, Meta, and Anthropic.

Lisa Su noted:

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

For supporters, the response to whether AMD stock will continue upward is affirmative, provided that this robust demand persists.

The AMD Stock Bear Case

Conversely, cautious analysts emphasize a beta of 2.48 alongside a heavy reliance on a select group of major AI clients. Highlighting the broader industry environment, Nvidia CFO Colette Kress stated:

“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 hyperscale buyers decide to scale back their AI expenditures? Their conclusion is negative.

AMD Stock Forecast: What To Watch Now

The upcoming earnings announcement, slated for November 3, serves as the next significant milestone. On-time delivery of the Helios product would strengthen the outlook, supporting the 24/7 Wall St. perspective that the $750 price objective might ultimately prove conservative. Meanwhile, the bearish scenario hinges simply on a deceleration of orders from even a single major customer.

Ultimately, will AMD keep going up? At the time of writing, further gains remain possible, but only if the company successfully achieves its 2027 performance objectives.

Frequently Asked Questions

What was AMD’s closing price and year-to-date return mentioned in the article?

AMD closed Friday at $630.63, representing an approximate 194% increase for the year.

What are AMD management’s expectations for the data center segment?

CEO Lisa Su stated that the company expects data center segment revenue to more than double year-over-year in 2027, with overall data center business growth expected to exceed 100%.

How did Intel’s supply constraints impact AMD?

Intel CEO Lip-Bu Tan noted that Intel could only supply 50% of customer CPU demand. Concurrently, AMD’s server CPU market share grew to 34.5% in the second quarter compared to 27.3% the previous year.

What is the bull case price target and catalyst for AMD stock?

Strategist Tony Zhang set a $750 price target by November backed by a 600/750 call spread, fueled by a reported 10% price increase on AI chips and strong customer demand for Helios.

What are the main concerns cited by the bear case?

Bears point to a beta of 2.48, heavy reliance on a few major AI clients, valuation concerns, and potential risks if hyperscalers pause their AI spending.