Key insights
- Wolfe Research remains bullish on AMD, citing strong server GPU demand driven by Meta AI deployments. They raised 2027 revenue and EPS estimates, anticipating significant upside from AI-related orders. The most important catalyst is shipping the first gigawatt to OpenAI and Meta and receiving a follow-on order. Client business weakness is a potential offset. Wolfe maintains an Outperform rating.
Investing.com - Wolfe Research said it remains bullish on Advanced Micro Devices stock (NASDAQ:AMD), citing stronger server GPU demand and the impact of Meta AI deployments.
The firm adjusted its calendar year 2026 estimates to reflect stronger server GPU performance offset by weaker client business, leaving total 2026 estimates largely unchanged. Wolfe raised its calendar year 2027 revenue estimate to $74 billion and earnings per share to $12.63, reflecting Meta AI impact.
The firm said the most important catalyst for AMD is shipping the first gigawatt to OpenAI and Meta and receiving a follow-on order. Wolfe values the stock at 22 times earnings based on its 2027 estimates.
The firm noted potential upside from a third customer, which could add $2 to $3 to earnings per share, and server CPU strength. Client business uncertainty remains an offset to the positive factors.
Wolfe maintains an Outperform rating on AMD shares.
In other recent news, Qorvo Inc. reported its third-quarter fiscal 2026 earnings, exceeding analysts’ expectations with an earnings per share of $2.17, compared to the projected $1.86. The company’s revenue for the quarter was $993 million, slightly higher than the anticipated $988.69 million. Despite these positive results, the company’s stock experienced a decline, indicating possible investor concerns about future guidance. Additionally, Qorvo and Skyworks Solutions received a "Second Request" from the U.S. Federal Trade Commission regarding their proposed merger. This request, part of the FTC’s ongoing review, extends the waiting period under the Hart-Scott-Rodino Act. In light of the pending acquisition by Skyworks Solutions, Wolfe Research downgraded Qorvo’s stock rating to Peerperform from Outperform. The downgrade was influenced by challenges in achieving content gains in RF and market consolidation. These developments highlight significant changes for Qorvo and its strategic direction.
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