Dear AMD Stock Fans, Mark Your Calendars for May 5

Advanced Micro Devices (AMD) is due to report its fiscal first-quarter results on May 5. With demand for central processing unit (CPU) chips heating up amid the accelerating proliferation of agentic AI, the chip giant's growth looks poised to accelerate meaningfully in the medium-to-long term. What's more, the company's graphics processing unit (GPU) business appears to be expanding considerably.

AMD is already benefiting to some extent from these trends, which should enable it to deliver impressive Q1 results. Two analysts also recently issued bullish notes on the chipmaker. Now, growth investors looking for increased exposure to the chip space may want to consider buying AMD stock. 

About AMD Stock

Based in Santa Clara, California, Advanced Micro Devices develops semiconductors used in computers, data centers, and gaming. Its GPUS are increasingly being utilized to help develop AI as well. 

In fiscal Q4, AMD's non-GAAP net income jumped 42% to $2.5 billion, compared with $1.78 billion in the same period a year earlier. Revenue advanced 34% year-over-year (YOY) to $10.27 billion.

Changing hands with a forward price-to-earnings (P/E) ratio of 44.9 times, AMD has a market capitalization of $453.6 billion.

The CPU and GPU Businesses Have Powerful, Positive Catalysts

With the demand for agentic AI accelerating, data centers are buying more of AMD's EPYC CPUs. That's because CPUs are generally seen as more effective than GPUs — an area in which Nvidia (NVDA) dominates — when it comes to facilitating agentic AI.

Demonstrating the considerable extent to which CPU demand is climbing, reports emerged in late March that PC makers are facing shortages of both AMD and Intel (INTC) CPU chips. When the demand for a company's products outstrips supply — usually causing prices to climb considerably — the top and bottom lines often explode higher. With the core CPU business seeing this kind of growth, AMD's revenue and profits look poised to continue surging.

Meanwhile, I/O Fund analyst Beth Kindig recently asserted that AMD could develop a “niche in providing lower-cost GPU options" for Big Tech firms “looking to save on their massive AI-related capital expenditures.” This trend may already be in play, as both Oracle (ORCL) and OpenAI announced major long-term deals to purchase AMD's GPUs in October 2025. Meta Platforms (META) unveiled a similar agreement in February 2026.

Finally, as I previously reported, AMD CEO Lisa Su believes the AI data-center business will expand rapidly in the next three to five years. Su's forecast suggests that demand for the company's CPUs and GPUs among data centers is poised to soar.

What Do Analysts Think of AMD Stock?

Kindig recently predicted that AMD may deliver higher returns for investors than Nvidia by 2030. The analyst also thinks that Nvidia's market capitalization could jump to $10 trillion by 2030, versus its current level of $4.8 trillion. As noted earlier, Kindig expects AMD's GPUs to be attractive to a considerable number of major tech firms.

Wells Fargo analyst Aaron Rakers also recently released a positive note on AMD stock. The analyst added AMD to Wells Fargo's “second-quarter tactical picks list,” based on the positive outlook for its EPYC CPUs and possible upcoming GPU deals. Rakers kept a $345 price target and an “Overweight” rating on AMD stock.

Overall, while AMD's valuation is moderately high, its excellent Q4 results, powerful growth catalysts, and superb outlook still make it a good pick for growth investors looking to raise their exposure to the high-flying chip space.