AMD to $300 Looks Easy-Here's Why $500 Could Be Next

Advanced Micro Devices (NASDAQ: AMD) can easily hit $300 and $500 in time, as the robust AI-driven outlook continues to brighten. The primary takeaways from the company’s first investor day in three years are that its long-term forecasts have been raised and are likely to remain low.

Dr. Su, who has issued overly cautious forecasts in the past, is forecasting a 35% compound annual growth rate (CAGR) in revenue over the next three to five years, underpinned by demand for data centers and AI. 

That’s within a market expected to grow at a high double-digit CAGR, where companies are also projected to gain double-digit market share. 

The analysts’ response is very bullish. Not only do they see the update as bullish relative to their prior forecasts, but there is also some consensus that the forecast is low. Wedbush analysts spell it out clearly: in their view, the recent deals signed, including those with OpenAI and Oracle (NYSE: ORCL), are sufficient to drive upside relative to guidance, and more deals are expected.

Bank of America analysts flagged AWS re: Invent 2025 as a potential source of new announcements and catalysts for the stock price. 

Analysts Say AMD Guidance Leaves Upside: Reaffirm Targets

Although analysts viewed AMD’s forecast update as both bullish and cautious, most merely reaffirmed their prior ratings and targets. This could be viewed as a bad sign; however, it sets the group up for another upgrade/revision cycle driven by future outperformance. And outperformance is likely to be substantial. As it stands, the company and the analysts see growth front-ended with near-term results likely to outpace the 35% target.

Based on market dynamics, demand forecasts, and existing deals, quarterly growth could exceed triple digits systemwide for a few quarters before settling into a more sustainable double-digit pace. Because the company is expected to gain market share from NVIDIA (NASDAQ: NVDA), its results are likely to be similar to NVIDIA's, including five consecutive quarters of triple-digit growth, with growth centered in its data center and GPU businesses.

The reason to expect such strength is scale. Advanced Micro Devices' push toward rack-scale capability culminates in its Helios platform. The platform combines AMD GPUs, CPUs, and operating systems into an OCP-compliant rack suitable for rack-scale deployments in hyperscale AI data centers. The expected late-2026 launch will open the door to unprecedented demand, as evidenced by the early wins with OpenAI and Oracle. 

Analysts Point to AMD $300: Valuation Says AMD $500 Is Coming

The analysts' updates didn’t include price target increases, but all revisions were above consensus forecasts reported by MarketBeat, suggesting a $300 price point within the next few quarters. There is relatively high confidence in the $300 target, with approximately one dozen of the 42 ratings tracked by MarketBeat pegged at that level, and some forecasts point to higher moves.

The high end of the range is nearly $400 and will likely be exceeded in the near future, given the valuation. 

The potential for guidance to be cautious or not, AMD stock trades at a significant discount relative to its long-term forecasts. The consensus is for a 50% EPS CAGR over the next five years, which would put earnings above the $20 market value and this stock at a 10x multiple.

The stock price could double in that time and only match the S&P 500; the more likely scenario is that AMD will run a 30x to 40x multiple like most other quality, blue-chip tech stocks and gain as much as 300%. Assuming that the forecasts are low, the value is deeper. 

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The article "AMD to $300 Looks Easy—Here’s Why $500 Could Be Next" first appeared on MarketBeat.