Bernstein updated its forecasts to reflect stronger data center performance and weaker PC assumptions. The firm now expects EPYC server processor sales to grow approximately 50% year-over-year in 2026.

The revised outlook also incorporates the impact of AMD’s AI-related deal with Meta, which has not yet been fully priced into broader market consensus. Bernstein now forecasts AMD’s first-quarter 2026 revenue at $9.9 billion, with earnings per share of $1.27, slightly above its previous estimates of $9.8 billion and $1.25.

For the full year 2026, Bernstein expects revenue of $45.8 billion and earnings per share of $6.48, compared with earlier projections of $44.2 billion and $6.12. The firm noted that the market has not fully accounted for the potential upside from Meta-related demand, suggesting that 2027 forecasts may still be too conservative.

However, Bernstein also cautioned that expectations for the PC segm

ent appear overly optimistic, which could weigh on AMD’s near-term outlook.

AMD’s stock rating was recently upgraded from Hold to Buy, driven by robust demand and improving profitability in its data center segment. The company is expected to deliver year-over-year revenue growth in the first quarter of 2026, supported by strong demand for high-performance CPUs and GPUs used in AI workloads.

AMD’s role in the AI computing ecosystem continues to expand, further strengthening investor confidence in its long-term growth prospects.

Market Interpretation

Goldman Sachs also remains bullish on AMD and the broader semiconductor sector, citing strong fundamentals. At the same time, lead times across various semiconductor segments have increased significantly, signaling an accelerating upcycle in the industry. These trends highlight AMD’s positive outlook as it benefits from sustained demand for advanced computing power in the rapidly growing AI and data center markets.