Aletheia Capital raised its price target on Advanced Micro Devices (AMD) from $700 to $800 on October 28, maintaining a "Buy" rating and adding the stock to its Alpha portfolio.
Based on AMD's latest closing price of $560.26, the new target implies potential upside of approximately 42.8%.
The firm believes that stronger-than-expected demand for server CPUs and AI chips, combined with improved supply chain support and enhanced product competitiveness, will significantly boost AMD's earnings outlook over the next two years.
Aletheia Capital expects these growth drivers to begin materializing as early as the fourth quarter of 2026, when AMD's data center business revenue is projected to more than double year-over-year.
In 2027, revenue for that segment is expected to triple year-over-year, with server CPU revenue forecast to more than double and GPU revenue expected to quadruple, becoming the primary engine for the company's overall performance growth.
Based on this assessment, Aletheia Capital has substantially raised its earnings forecasts for AMD, projecting diluted earnings per share to triple year-over-year in fiscal 2027, followed by an additional 80% increase in fiscal 2028, representing cumulative growth of more than fourfold over three years.
The firm noted that its earnings estimates are significantly above consensus expectations, and based on sum-of-the-parts valuation and a price-to-earnings multiple of approximately 24 times for fiscal 2027 to 2028, it raised AMD's price target to $800.
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