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24/7 Wall St. points to $650 as a 2027 bull-case for AMD, betting on AI data-center momentum
The Apex Times

THE APEX TIMES

Business/The Apex Times/Jun 8, 12:18 PM EDT

24/7 Wall St. points to $650 as a 2027 bull-case for AMD, betting on AI data-center momentum

The analysis ties the target to accelerating AMD Data Center results, a surge in free cash flow, and large disclosed customer GPU commitments, while flagging U.S. export controls as the biggest downside.

By The Apex Times Newsroom3 min readAI-assisted Apex article

Advanced Micro Devices is already one of the most closely watched chip makers for the artificial intelligence infrastructure buildout, and a new market analysis argues the stock could reach $650 per share in 2027 under a bullish set of assumptions. The forecast, published June 8 by 24/7 Wall St., frames AMD’s Data Center business as the core driver, pointing to a recent quarter in which Data Center revenue rose 57% year over year to $5.78 billion.

AMD reported first-quarter 2026 revenue of $10.3 billion, with net income of $1.4 billion and diluted earnings per share of $0.84 on a GAAP basis. In its segment breakdown, AMD said Data Center segment revenue was $5.8 billion, up 57% year over year, driven by demand for EPYC processors and the ramp of Instinct GPU shipments.

The same quarter also showed a sharp improvement in cash generation. AMD’s earnings materials showed record free cash flow of $2.566 billion in the period. In its outlook for the second quarter, AMD guided revenue to about $11.2 billion (plus or minus $300 million).

On the product and customer side, AMD’s commentary in the earnings release emphasized its MI450 and Helios ecosystem. CEO Lisa Su said customer engagement around the MI450 Series and Helios was strengthening, and that leading customer forecasts exceeded initial expectations, with a pipeline of large-scale deployments increasing visibility into growth.

The 24/7 Wall St. bull case also leans on several large, previously disclosed AI infrastructure deals. AMD and OpenAI announced a partnership aimed at deploying 6 gigawatts of AMD Instinct GPUs, beginning with a first 1 gigawatt deployment starting in the second half of 2026.

Separately, AMD and Meta disclosed an expanded strategic partnership to deploy up to 6 gigawatts of AMD Instinct GPUs, with shipments to support the first gigawatt deployment expected to begin in the second half of 2026. And Oracle said it will launch an AI supercluster on Oracle Cloud Infrastructure that will start with an initial deployment of up to 50,000 AMD Instinct MI450 series GPUs in calendar Q3 2026 and expand in 2027.

In the 24/7 Wall St. model, reaching $650 per share by June 2027 would require substantial multiple expansion on top of earnings growth. The analysis said the Street’s average target was $482.69, while its own base case for June 2027 was $527.35 and its bull case was $586.63, with a bear case of $400.21. It also argued that a $650 outcome would imply a forward price-to-earnings multiple near 95 times based on forward EPS of $6.87.

Still, the path to any long-dated stock price target is inherently uncertain, and AMD itself did not provide a 2027 per-share target in its filings or earnings materials. The company’s results and guidance highlight strong momentum, but they also show why the forecast is fragile. AMD has previously disclosed net inventory and related charges of approximately $440 million tied to U.S. government export control on Instinct MI308 data-center GPU products, and those kinds of regulatory constraints can affect both revenue timing and margins.

Why It Matters

  • AMD’s ability to translate AI infrastructure demand into sustained Data Center revenue and cash generation is the central question for the stock’s valuation trajectory into 2027.
  • Large disclosed commitments from customers such as OpenAI, Meta, and Oracle Cloud can support near- and medium-term demand visibility, but they do not remove execution and ramp risks.
  • Regulatory and export-control developments remain a key variable for AMD’s AI accelerator shipments and profitability, which can quickly change investor expectations.
  • Long-dated equity targets based on high forward multiples are sensitive to revisions in earnings estimates, not just top-line growth.

Sources

Key Facts

  • 24/7 Wall St. published a June 8, 2026 analysis arguing AMD shares could trade at $650 in 2027 under a bull-case scenario.
  • AMD’s first-quarter 2026 Data Center revenue was $5.8 billion, up 57% year over year.
  • AMD reported record free cash flow of $2.566 billion in first quarter 2026 and guided second-quarter 2026 revenue to about $11.2 billion.
  • The 24/7 Wall St. piece links the bull case to a sustained Data Center growth pace and higher EPS estimates through 2027, implying roughly a 95x forward P/E on forward EPS of $6.87.
  • In AMD’s earnings release, CEO Lisa Su said customer engagement around MI450 and Helios was strengthening, with leading customer forecasts exceeding initial expectations.
  • AMD previously disclosed approximately $440 million in net inventory and related charges from U.S. export controls tied to its Instinct MI308 GPUs.

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24/7 Wall St. points to $650 as a 2027 bull-case for AMD, betting on AI data-center momentum | The Apex Times