‘Buy’ AMD Stock, Affirms Top Analyst Despite Near-Term Estimate Cuts

FomoAnxiety · 2026-03-16T11:53:18+00:00

AMD may face short-term estimate cuts due to cautious outlooks in the PC and gaming sectors, but its long-term AI prospects remain strong, with potential for significant earnings growth supported by server demand.

FomoAnxiety

2026-03-16 11:53:18

Abstract generation in progress

Advanced Micro Devices (AMD) may see some near-term estimate cuts, but its long-term story tied to AI remains intact, according to Wolfe Research analyst Chris Caso. After AMD hosted a call with analysts, Caso reiterated an Outperform rating and a $300 price target on the stock, implying nearly 55% upside from current levels.

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It is worth noting that Caso ranks 93 out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 62%, with an average return per rating of 26.8% over a one-year timeframe.

AMD Sees AI and Server Strength despite PC Caution

Caso said AMD sounded slightly more cautious about its PC and gaming businesses, mainly because higher memory prices could affect demand. As a result, he expects Wall Street earnings estimates to come down slightly in the near term.

At the same time, the server business continues to strengthen, which helps offset the softer outlook in those segments.

More importantly, AMD continues to see strong demand for its AI accelerators and server CPUs, driven by the rapid growth of AI workloads. The company also noted that some customers are building new CPU-based data centers to meet rising computing needs, which should support demand for both standard and high-density server CPUs.

Caso also highlighted AMD’s partnerships with Meta Platforms (META) and OpenAI as a key opportunity. He believes the market may not fully reflect the potential for additional large orders from these companies, which could provide further upside for the stock.

Overall, while estimates may move slightly lower in the near term, Caso still sees a path for AMD to generate around $13 in long-term earnings per share, supported by AI chips and server CPUs.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is a Moderate Buy, based on 22 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $285.52, representing a potential 47.64% upside for the shares.

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