AMD Stock Rises 2% as AI Chip Demand and Data Center Growth Fuel Rally
During the European trading session on Saturday, the Advanced Micro Devices (AMD) stock maintained its bullish trend from the previous...
Quick overview
- AMD stock is trading near $557, maintaining a bullish trend with a 2% gain in the last 24 hours.
- The company reported $10.3 billion in sales for Q1 2026, a 38% increase from the previous year, driven largely by a 57% growth in its data center business.
- Strong demand for AI chips, supported by partnerships with major companies like Microsoft and Dell, is contributing to AMD's growth.
- Analysts are optimistic about AMD's future earnings, predicting revenue of $11.25 billion for Q2 2026 and a stock price target between $450 and $700.
During the European trading session on Saturday, the Advanced Micro Devices (AMD) stock maintained its bullish trend from the previous session and was trading near $557, showing solid 2 percent gains in the last 24 hours. From a long term perspective, the stock has gained substantially this year and continues to sit near all time highs of $580.
Moreover, the stock is getting strong support from the high AI demand in the market. Many big companies, including Microsoft, Google, Meta, and Amazon, continue to invest billions of dollars in AI infrastructure, which increases the demand for AI chips, which has helped the AMD company to grow as they make powerful chips like the EPYC processors and Instinct GPUs.
AMD Earnings Show Strong Business Growth
Moreover, the proof of this company’s strong performance is that the company made 10.3 billion dollars in sales in Quarter one 2026, which was 38 percent higher compared to the last year. However, the data center business, which sells chips for large AI computers, made most of the money overall in this quarter and increased by 57 percent to 5.8 billion dollars.
Meanwhile, the company earned a GAAP net income of 1.4 billion dollars, and non GAAP earnings per share were 1.37 dollars. These readings were better than market expectations, which was another good sign for company growth. Moreover, the gross margin was at 53 percent on a GAAP basis and an impressive 55 percent on a non GAAP basis. Not only that, but operating income also remained strong.
New Deals Are Helping AMD Grow Faster
Apart from this, the AMD is making strong progress through new partnerships and deals. As per the latest report, the company has signed important agreements with Dell, HPE, and Lenovo to supply its latest EPYC processors and Instinct GPUs for AI servers. This was seen as another positive factor for the company to grow.
Not only this but, the company is also working closely with Microsoft on custom AI chips and has increased supply to hyperscale data centers. Hence, these strong partnerships helped AMD data center sales jump 57 percent to 5.8 billion dollars in Q1 2026.
Investors Wait For AMD Next Earnings
Looking forward, investors are keeping their eyes on the next Quarter 2 2026 earnings report, which is scheduled to be released on August 4, 2026. Analysts expect the company will make around $11.25 billion in revenue while earnings per share (EPS) are estimated at about $1.55.
Looking at its overall performance, many analysts have positive feelings about this stock and they give Buy rating to it. Analysts expect AMD’s stock price could reach anywhere from $450 to $700.
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