Wall Street Is Looking Here. I’m Looking Somewhere Else

Vandita Jadeja

Mon, August 31, 2026 at 8:30 PM GMT+3 4 min read

Quick Read

AMD's Data Center revenue more than doubled to $6.72 billion YoY, and our $628.27 price target implies 35% upside from current levels.
NVDA grew revenue 106% to $96 billion but trades at a lower P/E than AMD, which needs flawless execution to justify its stretched multiple.
Lisa Su projects the AI accelerator market hitting $1.4 trillion by 2030, with Anthropic and Meta committing 8 GW of MI450 deployments.
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Wall Street is fixated on NVIDIA (NASDAQ:NVDA), and understandably so after a $96.22 billion quarter and $108 billion next-quarter guide. My attention is on the other side of the AI accelerator trade.

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Advanced Micro Devices (NASDAQ:AMD) is where I think the risk-reward looks more compelling right now. Our 24/7 Wall St. price target for AMD is $628.27, implying 34.94% upside from $465.58. We rate shares a buy with high confidence.

AMD Price Target — 24/7 Wall St.

24/7 Wall St. Price Target Summary

AMD's Setup Heading Into the Second Half

AMD has been on a tear. Shares are up 117.4% year to date and 176.18% over the past year, dwarfing NVIDIA's 16.79% YTD move. Q2 FY26 delivered $11.54 billion in revenue (up 50.11% YoY), non-GAAP EPS of $1.66, and a Data Center segment that more than doubled year-over-year to $6.72 billion.

Management guided Q3 revenue to approximately $13 billion, or roughly 41% YoY growth. The stock has cooled slightly, down 1.62% on the week, giving new capital a cleaner entry.

AMD Earnings Explorer — 24/7 Wall St.

Bull Case for $650+

The bull case starts with Lisa Su's TAM upgrade. On the call, Su said AMD now expects the data center AI accelerator market to grow more than 45% annually to approximately $1.4 trillion by 2030.

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Helios, AMD's rack-scale platform, delivers up to 15% more throughput at the same rack power, and up to 30% more tokens per dollar than the competition. Anthropic committed to up to 2 gigawatts of MI450 deployments; Meta signed for 6 gigawatts.

Jean Hu said EPS will be "significantly higher than $20" against the prior long-term target. Our bull scenario points to $651.55.

What Could Go Wrong

AMD trades at 175x trailing earnings and roughly 81x forward earnings, leaving little room for a stumble. Gaming revenue fell 31% YoY, capital expenditures jumped 186.52%, and free cash flow slipped 9.89%. Reddit sentiment has drifted into bearish territory with a score of 32, and export controls on MI308 remain an overhang.

Bulls would counter that the FCF dip reflects the Helios ramp, that Q3 guidance already implies acceleration, and that AMD is still in the early stages of a multi-year AI adoption cycle. Our bear case lands at $480.08.

AMD Analyst Ratings — 24/7 Wall St.

How AMD Compares to NVIDIA and Broadcom

NVIDIA is the obvious comp. It grew Q2 FY27 revenue 105.85% to $96.22 billion, but trades at a P/E of 44, well below AMD's multiple. Our NVDA target of $300.33 offers 38.05% upside. The valuation contrast matters: AMD needs execution to justify the multiple.

Broadcom (NASDAQ:AVGO) is the custom-silicon alternative. Its Q2 FY26 AI semiconductor revenue reached $10.80 billion, up 143% YoY, with Q3 AI revenue guided to $16.00 billion. Broadcom's hyperscaler relationships are deep, but AMD's merchant GPU model gives it broader addressable customer diversity.

All of that GPU and custom-silicon spending has to be powered, cooled, and networked by somebody, and we profiled seven of those suppliers in a free AI infrastructure report. Against these peers, our $628.27 target looks reasonable rather than aggressive.

AMD Price Prediction 2026-2030

AMD looks compelling here on the strength of Data Center momentum, the Anthropic and Meta commitments, and 2027 EPS visibility that management just re-anchored above $20. The setup weakens if Helios yields slip or hyperscaler CapEx signals soften. The 24/7 Wall St. price target of $628.27 with 90% confidence tips the scale to buy.

These projections assume AMD keeps executing on Helios, MI450, and MI500. Significant upside or downside could result from AI CapEx cycles or shifts in export policy.