AMD Just Eased Wall Street’s AI Spending Scare. Here’s What It Means for the Stock Vandita Jadeja Mon, November 9, 2026 at 11:03 AM EST 5 min read AMD +11.40% NVDA -5.77% INTC +3.80% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
AMD's Q3 data center revenue surged 97% to $8.55B, with Q4 guidance of ~$17B implying ~66% growth, sending shares up 7%.
NVIDIA grew data center revenue faster at 117% while carrying a trailing P/E of 42, well below AMD's stretched multiple of 182.
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AMD (NASDAQ:AMD) delivered a third-quarter report that gave the AI trade the reassurance it needed. Data center spending is still accelerating. AMD is trading at $518.69 before the bell, up 7.19%. The 24/7 Wall St. price target stands at $505.37 over the next 12 months.
HOLD at current price (BUY at the model's reference price)
The model set this target against a reference price of $469.59. At that level it implied 7.62% upside and a buy rating. The jump after earnings has already priced in that gain, so at today's quote the rating reads closer to hold. Our confidence is high: the data are fresh, analyst coverage is deep and earnings momentum is strong.
Our 24/7 Wall St. price target sits slightly below where AMD trades today. Management now expects revenue to grow more than 80% in 2027.
The Helios rack ramp also remains early. Either could beat our model, so treat the target as one datapoint among many. The bull case below lays out the upside in detail.
Shares are up 142.2% year to date but fell 18.18% over the past month. The stock is 21% below its 52-week high of $658.52.
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Q3 revenue reached $13.38B, +44.7% YoY, ahead of the $13.08B consensus. Non-GAAP EPS of $2.09 exceeded the $1.94 estimate. Data Center sales hit $8.55B, +97%. Q4 revenue guidance of roughly $17B ±3% implies about 66% growth, which is the forecast Reuters said eased AI spending fears.
Management expects data center to exceed 80% of total revenue in 2027. Helios racks are already online at Anthropic, Meta, Microsoft, OpenAI and Oracle.
The CFO also expects opex to grow at "less than half of the top-line revenue growth rate". Wall Street agrees: 5 Strong Buy, 40 Buy and 11 Hold ratings, with a consensus target of $640.21. The bull case reaches $681.35, or 31% upside.
A trailing P/E of 182 leaves little room for error. Free cash flow dropped to $554M (-70.9% YoY), and inventory reached $11.46B. Management linked that build to data center demand that exceeds supply.
GAAP EPS of $1.46 also took a $0.66/sh non-cash warranty charge. Gaming fell 40%, and AMD is planning for a double-digit PC market fall in 2027. The bear case works out to $404.58, or -22%.
AMD's direct accelerator rival is NVIDIA (NASDAQ:NVDA). It grew data center revenue faster at a fraction of AMD's trailing multiple. On forward earnings, AMD's 38x multiple narrows that gap, so our target looks reasonable without leaving room for further multiple expansion.
Intel (NASDAQ:INTC) competes with EPYC for server CPU share. It posted $0.52 in Q3 non-GAAP EPS, but its foundry unit lost $1.85B. That execution gap helps justify AMD's premium.
The 24/7 Wall St. price target of $505.37 has 90% confidence. The stock now trades near fair value. What matters most is the gap between AMD's earnings multiple and NVIDIA's.
AMD looks more attractive to me if Helios shipments keep Q4 at the top end of guidance and free cash flow recovers. Inventory that keeps rising faster than revenue would weaken that case.
The post-earnings jump has already priced in the good news, and the broader expansion still has to be powered and cooled by someone (we pulled together seven suppliers doing exactly that in a free AI infrastructure report).
Looking further ahead, here is where our model projects AMD could trade if current growth trends continue.
The projections rest on AMD continuing to execute on its data center roadmap. Faster MI450 adoption could drove results toward the bull case, while export controls or a pause in hyperscaler spending could drove them lower.
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