Advanced Micro Devices (AMD) Stock Rises on Analyst Upgrade
On September 16, 2026, Advanced Micro Devices (NASDAQ: AMD) stock rose by 3.8% after Piper Sandler analyst David O'Connor reiterated an overweight rating and set a $600 price target for the semiconductor company's shares. The upgrade came amid reports that AMD is experiencing strong demand for its CPUs and GPUs, with management confirming production ramp-ups to meet this demand. Analysts expect AMD to at least meet or exceed earnings guidance in its upcoming Q3 report due on November 3. Wall Street anticipates a 41% sales increase to $13 billion and a 61% rise in earnings per share to $1.93, driven by improved profit margins from strong pricing power. Despite these positive forecasts, AMD's stock is currently trading at high valuations—over 128 times its expected earnings—with a PEG ratio over 2.0 and a price-to-free cash flow ratio of nearly 100x. However, the company’s free cash flow has outpaced net income in recent months, potentially making it an attractive buy for some investors.
Topics: Advanced Micro Devices earnings guidance Piper Sandler price target