AMD (AMZN:ADR) Maintains 39% Upside Outlook Amid Data Center AI Surge

Advanced Micro Devices (AMD) shares retreated about 28.8% from their $267.08 peak as of Feb. 13, 2026, following recent earnings. However, analysts maintain a strong buy consensus and an average price target of $288.54, implying a 39% upside from the Feb. 13 closing at $207.32. Q4 revenue rose 34% YOY to $10.3B, net income up 42% to $2.5B, and free cash flow nearly doubled to $2.1B. Data Center revenue climbed 39% to $5.4B, led by EPYC CPUs and MI350 Instinct GPUs. EPS is expected to grow 72.2% in 2026 and 60% in 2027, with a 35%+ CAGR in revenue and expanding operating margins. Demand for server CPUs and AI accelerators remains strong from hyperscalers and enterprises, supported by expanding cloud and AI workloads. The company projects EPS exceeding $20 by 2026, with a 37.9x forward P/E viewed as attractive relative to its growth potential.