DA Davidson Analyst Resets AMD Stock Price Target for 2026

Why It Matters

The upgrade signals a potential re‑rating of AMD as AI‑centric workloads revive server‑CPU demand, which could boost the chipmaker’s market valuation and investor sentiment.

Key Takeaways

• DA Davidson lifts AMD target to $375, up 70% from $220.
• New target assumes 32× calendar‑year‑2027 EPS.
• 2026 revenue forecast raised $2 billion, gross profit $1.5 billion.
• Intel’s Q1 CPU surge drives Luria’s bullish AMD thesis.
• AMD pricing power expected to rise amid tight supply.

Pulse Analysis

DA Davidson analyst Gil Luria stunned the semiconductor community on April 24 by moving AMD from a neutral stance to a buy and lifting the firm’s price target to $375, a 70 percent jump from the prior $220 level. The new target is anchored to a 32‑times multiple of calendar‑year‑2027 earnings per share, implying a valuation well above the Street’s consensus of roughly $289‑$290. Luria also nudged the 2026 revenue outlook up $2 billion and gross profit by $1.5 billion, positioning AMD’s earnings model ahead of both consensus forecasts and the company’s own guidance.

The upgrade stems from Intel’s first‑quarter 2026 results, where the chipmaker posted $13.6 billion in revenue—$1.4 billion above its midpoint guidance—driven almost entirely by a surge in server‑CPU demand. Executives described a structural shift as AI workloads move from GPU‑heavy pre‑training to inference and agentic tasks that require a near‑parity of GPU‑to‑CPU compute. If CPUs are re‑emerging as the backbone of the AI era, AMD’s growing data‑center CPU portfolio could capture a sizable slice of this expanding market, mirroring Intel’s unexpected upside.

Beyond the CPU narrative, Luria sees AMD’s pricing power strengthening as demand outpaces supply, allowing the company to lift prices and improve margins. Coupled with a robust GPU roadmap and large AI‑related contracts from Meta and OpenAI, the dual‑track growth could justify a re‑rating toward the $375 target. Investors should focus on AMD’s Q1 2026 earnings on May 5 for clues on CPU revenue, margin expansion, and pricing commentary, while monitoring GPU sales to gauge whether the bullish thesis holds.