Wall Street’s Q1 Earnings Expectations for AMD Stock on Tuesday

TLDR

• AMD is scheduled to release its Q1 2026 financial results following the market close on Tuesday, May 5.
• Market analysts project earnings per share (EPS) of $1.28 and total revenue of $9.88 billion, representing a year-over-year increase of approximately 33%.
• Based on options market activity, traders anticipate a potential stock price volatility of up to 8% following the earnings announcement.
• RBC has increased its price target to $325 while maintaining a Hold rating, citing concerns regarding the company’s current valuation.
• D.A. Davidson has upgraded the stock to Buy with a price target of $375, highlighting robust CPU demand driven by agentic AI.

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(SeaPRwire) –   AMD enters its upcoming earnings report with significant momentum. The company’s shares have surged nearly 70% since the start of the year, reaching all-time highs as the appetite for AI-related hardware remains strong.

Advanced Micro Devices, Inc., AMD

The semiconductor firm will disclose its Q1 2026 performance after the markets close on May 5. Consensus estimates point to $9.88 billion in revenue and an adjusted EPS of $1.28, both marking a roughly 33% improvement compared to the same quarter last year.

Options market data indicates that traders are bracing for an 8% swing in either direction by the end of the week. Given Friday’s closing price of just over $360, this suggests a potential upside target near $389 or a downside correction toward $331.

AMD has benefited from a series of positive developments, including new strategic collaborations with Meta and Anthropic. These partnerships have bolstered the argument that AMD is a key player in the expansion of AI infrastructure.

Analyst Targets Split Between Caution and Conviction

Ahead of the report, RBC Capital analyst Srini Pajjuri raised his price target from $230 to $325 but kept his rating at Hold. While he anticipates a quarter that beats expectations, he remains wary of the valuation, noting that AMD is trading at roughly 33 times 2027 earnings—a 75% premium compared to Nvidia.

Pajjuri also pointed to potential wafer supply limitations and noted that AMD’s lower exposure to CPUs compared to Intel could result in less benefit from the broader market recovery.

Conversely, Gil Luria of D.A. Davidson offered a more optimistic outlook. Following Intel’s strong first-quarter results, Luria upgraded AMD to Buy and increased his price target from $220 to $375, viewing Intel’s performance as a positive indicator for AMD’s CPU segment.

Luria’s thesis focuses on the rise of agentic AI. He referenced comments from Intel CEO Pat Tan regarding the shift in the GPU-to-CPU ratio for pretraining workloads—moving from a historical 8:1 ratio toward parity as the industry pivots to inference and agentic applications. This shift is expected to provide a significant boost to demand for AMD’s EPYC CPUs.

Revenue Estimates Get a Lift

Luria has increased his 2026 revenue forecast for AMD by $2 billion and his gross profit projection by $1.5 billion, figures that exceed current consensus. He suggests that AMD possesses the pricing power to increase costs across its product lines as demand continues to outstrip supply.

He also highlighted remarks from Intel CFO David Zinsner, who suggested that the industry could see double-digit growth extending into 2027.

Regarding AI GPUs, analysts generally expect AMD to confirm the production timeline for its MI4xx Helios series for Meta and OpenAI. Such confirmation would be critical for investors monitoring AMD’s efforts to compete with Nvidia in the data center GPU sector.

The general consensus on Wall Street is a Moderate Buy, consisting of 19 Buy ratings and nine Holds. With an average price target of $300, the stock is currently trading above the average analyst expectation, suggesting that AMD’s recent rally has outpaced many previous price targets.

The Q1 earnings report will be released after the market closes on Tuesday.