AMD's AI-Fueled Data Center Push Keeps Rally Rolling

AMD beat Q1 expectations with revenue of $10.25B (+37.8% YoY), led by Data Center up 57% to $5.78B, 55% adjusted gross margin and $1.37 EPS. For Q2, AMD guided about $11.2B in revenue (±$300M) with gross margin around 56%. CEO Lisa Su highlighted a meaningful acceleration in server CPU demand, a view echoed by Jefferies’ Blayne Curtis who raised the TAM to $120B by 2030 and sees AMD gaining share with Venice in H2 2026 as AI tailwinds drive growth. MI450/Helios GPU ramps remain on track, and management signaled confidence in exceeding long-term AI data center CAGR of >80%. Curtis remains bullish with a Buy rating and a $415 target (current price surpasses). Street targets average around $431.74, suggesting limited upside despite the strong beat.