41 Buy Ratings and No Sells: Why Wall Street Backs AMD

Lisa Su just delivered AMD (NASDAQ:AMD | AMD Price Prediction) shareholders a quarter that would have seemed fantastical a year ago. Q2 2026 revenue of $11.54 billion, up 50.11% year over year, with Data Center revenue of $6.72 billion, more than doubling at +107%.

Shares are up 142.15% year to date and 193.35% over the past year. Yet at $518.58, the stock still trades below where the AI infrastructure buildout says it should. Can AMD reach $750 in 2027? I think there is a path.

What’s Holding AMD Back Right Now

Over the past month, shares have gone essentially nowhere, up just 0.15%, and the reaction to a strong earnings report has been rough. AMD fell roughly 7.4% after Q2 as investors sought a bigger AI payoff, and an over-8% drop followed Elon Musk’s announcement that SpaceX will stop purchasing AMD chips and switch to Nvidia.

With a beta of 2.49, this stock overshoots in both directions. Expectations were elevated: shares sit just 1% below the 52-week high of $584.73. When the bar is that high, even a 3.06% EPS beat and 2.04% revenue beat fail to satisfy. That disconnect is keeping shares stuck.

Wall Street Sees 12% Upside. My Model Sees More

The Street is unusually one-sided. Five Strong Buys, 36 Buys, 10 Holds, and zero Sell ratings. That is 41 buys with nobody willing to bet against Lisa Su. The consensus target of $579.11 is modest given the growth trajectory.

My model’s base case sits at $639.64, or 23.35% upside, with a bull case of $665.57 and a bear case of $488.04. Confidence is high at 0.9. With bullish analyst share at 80% and quarterly earnings growth of 91.2% year over year, I think consensus is trailing the story, not leading it.

The Path to $750 Per Share

Reaching $750 from today’s price of $518.58 would require a 44.6% gain. With forward EPS of $8.64, a price of $750 implies a forward P/E of 87x. My base case of $639.64 already implies roughly 90x, so the bold target actually assumes multiple compression, not expansion, if EPS meets estimates. The real lever is earnings.

Catalysts are stacking: Q3 guidance is roughly $13 billion, or 41% year over year growth, and one Seeking Alpha analysis argues Data Center sales are set to more than double again in 2027.

Su put it plainly: “We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.” The primary risk is customer defection like the SpaceX switch scaling into a broader trend.

Where AMD Trades Today vs Its Earnings Power

At $518.58 against forward EPS of $8.64, AMD trades at roughly 60x forward earnings. That is not cheap on any static screen, but earnings are compounding fast enough that the PEG ratio sits at 1.116. Shares sit inside a 52-week range of $149.22 to $584.73.

Longer term, the compounding is remarkable: up 7,745.39% over 10 years. If Data Center keeps doubling, today’s multiple is the bargain, not the risk.

Is $750 Realistic? Here’s My Take

Reaching $750 requires a 44.6% gain in twelve months. My verdict: a stretch, but genuinely reachable.

Three things need to go right. Data Center revenue has to keep compounding above 50%. Helios ramps have to convert the OpenAI, Meta and Anthropic partnerships into recognized revenue. And forward EPS estimates need to move up as analysts catch up to guidance. What derails it is a hyperscaler pausing capex. We’ve outlined the blueprint for how AMD could reach $750 in 2027.

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