AMD’s Data Center Business Doubled and Our Price Target Shows Why

Vandita JadejaWed, August 5, 2026 at 4:00 PM UTC

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Advanced Micro DevicesQuick Read -

AMD's Data Center revenue doubled to $6.7B in Q2, supporting a BUY call and $640 price target implying 23% upside.

AMD trades at a steep 66x forward P/E versus NVIDIA's 23x, but dominates Intel with a 27% operating margin against Intel's negative EPS.

Anthropic, OpenAI, and Microsoft have committed gigawatts of MI450 GPU capacity, locking in AMD's H2 2026 revenue ramp through named hyperscaler contracts.

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AMD (NASDAQ:AMD) posted Q2 revenue growth of 50.11% to $11.536 billion, with Data Center more than doubling, yet a Reddit thread titled "AMD's revenue climbs 50% and data center sales doubled, but the stock is down" captured retail confusion. That gap between fundamentals and price action is where our model finds an edge.

Our 24/7 Wall St. price target for AMD is $639.64, implying 23.35% upside from the $518.58 close on August 4, 2026. The recommendation is buy with high confidence.

AMD Price Target — 24/7 Wall St.24/7 Wall St. Price Target Summary

Metric

Value

Current Price

$518.58

24/7 Wall St. Price Target

$639.64

Upside

23.35%

Recommendation

Confidence Level

90%

A Rally, a Pause, Then a Push Higher

AMD is up 142.15% year to date and 193.35% over the past year, adding 14.07% in the last week. The stock sits roughly 1% below its 52-week high of $584.73, well off the $149.22 low.

Q2 delivered non-GAAP EPS of $1.66 against a $1.6107 estimate, with Data Center revenue at $6.718 billion, up 107% year over year. Q3 guidance sits at roughly $13 billion, or 41% YoY growth.

AMD Earnings Explorer — 24/7 Wall St.Why Bulls See a Breakout Ahead

The bull case rests on signed customers. Anthropic committed to up to 2 gigawatts of MI450 Series GPUs in Helios racks, OpenAI has a 6 GW arrangement, and Meta is designing custom MI450-based silicon. Microsoft Azure is expanding Helios deployments alongside a new EPYC VM series.

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CEO Lisa Su told investors: "We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp." The bull-case scenario points to $665.57, supported by analyst consensus of $579.11 and 41 Buy or Strong Buy ratings.

AMD Analyst Ratings — 24/7 Wall St.The Risks Worth Watching

Bears point to valuation: trailing P/E of 162x and forward P/E near 66x. Gaming revenue fell 31% YoY, free cash flow declined 9.89% despite booming net income, and Q2 Data Center revenue landed at $6B versus a crowd-implied $6.86B.

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The counterfactual: FCF weakness reflects a 186.52% capex surge to build AI capacity. The bear scenario still lands at $488.04, a modest -5.89%.

How AMD Compares to NVIDIA and Intel

NVIDIA (NASDAQ:NVDA) is the direct AI GPU competitor. NVIDIA trades at a forward P/E of 23x with a 63% profit margin and 114% ROE. AMD's forward P/E near 66x is a heavy premium, but AMD is the accelerating challenger with a lower base, which justifies the multiple.

Intel (NASDAQ:INTC) is the x86 and data center rival losing share to AMD. Intel posts trailing EPS of -$2.09, operating margin of 12.2%, and forward P/E of 71x on depressed forward earnings. AMD's 27% non-GAAP operating margin makes the peer set look like a growth-versus-turnaround contrast, validating our $639.64 target.

AMD Price Projection 2026-2030

The 24/7 Wall St. price target is $639.64, the recommendation is buy, and confidence is 90%. Data Center is the tipping factor: 58% of revenue, doubling annually, backed by named hyperscaler contracts.

The setup looks constructive if MI450 ramps on schedule in H2 2026. The thesis weakens if Data Center growth cools below 60% YoY or export controls widen.

Year

24/7 Wall St. Price Target

2026

$639.64

2027

$725

2028

$810

2029

$895

2030

$968.92

These projections assume AMD executes on Helios deployments and MI450 ramps as guided. Significant upside or downside could come from AI capex cycles and export policy changes.

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Contact editorial@247wallst.com for any questions or corrections.

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Source: “AOL Money”