Aletheia Capital raised its Advanced Micro Devices (NASDAQ: AMD) stock price target from $700 to $800 on October 28, maintaining a “Buy” rating on the tech company.
Analyst Warren Lau, whose revised target represents an increase of 14.29% from the previous one, cited stronger demand for server CPUs and artificial intelligence (AI) computing.
The revision follows updated earnings estimates and is supported by strengthening supply chains and AMD’s competitive product portfolio.
Based on AMD’s share price of $560.26 at press time, the new target implies 42.79% upside potential.
Another AMD stock boost could come as early as Q4 2026
Aletheia expects the positive impact to begin materializing as early as the fourth quarter of 2026, with rapid growth in data center revenue serving as a key driver.
More precisely, Aletheia expects revenue from the segment to more than double year-over-year (YoY) in the fourth quarter of 2026 before tripling in 2027.
The forecast is supported by anticipated growth in server CPUs and GPUs, and Lau sees AMD’s fully diluted earnings per share (EPS) tripling YoY in fiscal 2027 and increasing by approximately another 80% in fiscal 2028.
These estimates are well above consensus expectations, and their magnitude is further emphasized by Aletheia’s inclusion of AMD to its Alpha Portfolio.
AMD as the fastest-growing AI compute provider?
The new $800 price target is based on a “sum-of-the-parts (SOTP)” valuation or an implied price-to-earnings multiple of 24 times its fiscal 2027–2028 earnings estimates. Therefore, the valuation depends heavily on AMD delivering the projected earnings growth.
That is, if AI infrastructure demand accelerates as expected and the company converts that demand into higher revenue and profits, the shares could have room to appreciate.
Conversely, slower adoption or weaker earnings growth could undermine the bullish case. For now, Aletheia remains confident that AMD is “the fastest-growing AI compute provider.”
“This rapid expansion, coupled with operating leverage, positions AMD as the fastest-growing AI compute provider. We project fully diluted EPS to triple YoY in FY27E and grow another ~80% in FY28E, effectively increasing over 5x in three years. Our estimates are well ahead of consensus. Consequently, we are adding AMD to our Alpha Portfolio,” Lu wrote.
Wall Street AMD stock price forecast
For context, AMD’s average analyst price target now stands at approximately $664.61, according to TipRanks data available at the time of writing.
This puts Aletheia’s $800 target well above the broader analyst consensus, which implies 18.57% upside based on the aforementioned data. Still, the most bullish predictions are much higher, with the Street-high one being $1,250.
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