Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. Valued at $807.1 billion by market cap, the company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services.
Shares of this semiconductor giant have significantly outperformed the broader market over the past year. AMD has gained 173.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 16%. In 2026, AMD stock is up 121.8%, surpassing the SPX’s 8.3% rise on a YTD basis.
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Zooming in further, AMD’s outperformance is also apparent compared to the iShares Semiconductor ETF (SOXX). The exchange-traded fund has gained about 102.3% over the past year. Moreover, AMD’s triple-digit gains on a YTD basis outshine the ETF’s 65.1% returns over the same time frame.
www.barchart.com AMD's outperformance is driven by growing investor confidence in its position as the premier "second source" behind NVIDIA Corporation (NVDA) in the AI accelerator market, which management projects will reach $1.4 trillion by 2030. The company is accelerating its operational roadmap by scaling its 2nm EPYC "Venice" CPUs, shipping its "Helios" rack-scale AI system, and expanding allocation for its upcoming MI400 series AI accelerators through 2027. Backed by surging data center demand, multiple analyst price target upgrades, and broader macroeconomic tailwinds like cooler inflation, AMD continues to solidify its role in the global AI infrastructure boom, further strengthened by recent U.S. approvals for key international shipments, which expand its total addressable market for enterprise chips.
For the current fiscal year, ending in December, analysts expect AMD’s EPS to grow 91.7% to $6.27 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 45 analysts covering AMD stock, the consensus is a “Strong Buy.” That’s based on 35 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
www.barchart.com This configuration is more bullish than three months ago, with 31 analysts suggesting a “Strong Buy.”
On Jul. 28, Mizuho Financial Group, Inc. (MFG) analyst Vijay Rakesh reiterated a “Buy” rating on AMD and boosted a price target to $625, implying a potential upside of 26.3% from current levels.
The mean price target of $576.76 represents a 16.5% premium to AMD’s current price levels. The Street-high price target of $1,250 suggests an ambitious upside potential of 152.6%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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