Advanced Micro Devices (AMD) sees analyst upgrades after robust Q1 earnings
Advanced Micro Devices received multiple analyst price target upgrades following its robust first quarter 2026 earnings report. The chipmaker’s performance, particularly in its data centre segment, prompted several financial institutions to revise their outlooks for the company. This development occurred despite a counter-narrative emerging from notable short positions taken against the stock.
The company reported first quarter 2026 revenue of $10.3 billion, with its data centre revenue climbing 57% year-on-year. Advanced Micro Devices also provided second quarter revenue guidance of approximately $11.2 billion, with a margin of $300 million. This financial performance led analysts to increase their price targets; Citi lifted its AMD target to $460 from $358, Mizuho raised its target to $515, and BofA increased its target to $500. These upgrades were consistently attributed to the sustained growth potential in artificial intelligence and data centre markets.
Concurrently, reports highlighted sizable short bets against Advanced Micro Devices from Leopold Aschenbrenner’s fund. This bearish sentiment, however, was not accompanied by any disclosed changes to AMD’s operational strategy or financial guidance. On Monday, 18 May 2026, Advanced Micro Devices shares were trading down 2.4% at $414.02, compared to a previous close of $424.10.
Why Short Bets Outweighed Positive Analyst Sentiment
Advanced Micro Devices designs and manufactures high-performance processors and graphics chips. These components are the brains of computers, servers, and gaming consoles, with a significant portion of their revenue now coming from their data centre segment, where their powerful chips are crucial for cloud computing and artificial intelligence applications. Their customers range from large tech companies building vast data centres to individual consumers buying computers.
Today's share price movement was primarily driven by the emergence of substantial short positions against the stock, which overshadowed otherwise positive news. Despite Advanced Micro Devices reporting robust first quarter 2026 revenue of $10.3 billion, with data centre revenue climbing 57% year-on-year, and receiving multiple analyst price target upgrades, the market reacted more strongly to the disclosed bearish bets. Analysts like Citi, Mizuho, and BofA raised their targets to $460, $515, and $500 respectively, citing sustained growth potential in AI and data centres, yet the market focused on the counter-narrative of short sellers.
On Monday, 18 May 2026, Advanced Micro Devices shares were trading down 2.4% at $414.02, a decrease from its previous close of $424.10.
Consider a scenario where a popular restaurant receives rave reviews from food critics, praising its innovative menu and excellent service. However, a prominent food blogger, known for their contrarian views, publishes a highly critical review, betting that the restaurant will fail. Even with the positive critical acclaim, the blogger's negative outlook can cause a temporary dip in reservations as potential diners pause, waiting to see if the bearish prediction holds true.
Advanced Micro Devices
Advanced Micro Devices, Inc. (AMD) is a global semiconductor firm, organised into two primary business segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. Its extensive product portfolio includes x86 microprocessors, chipsets, and both integrated and discrete graphics processing units (GPUs), alongside data centre and professional GPUs. AMD also develops server and embedded processors, as well as semi-custom System-on-Chip (SoC) solutions. These products are marketed under well-known brands such as AMD Ryzen, Radeon, and EPYC, serving a diverse clientele that encompasses original equipment manufacturers, cloud service providers, and independent distributors. Established in 1969, the company maintains its headquarters in Santa Clara, California.