Piper Sandler raises AMD price target to $650 on data center strength

Piper Sandler raised Advanced Micro Devices' price target from $600 to $650, maintaining an "Overweight" rating after strong third-quarter results driven by data center performance. AMD's Q3 revenue and earnings per share beat consensus estimates by 2-9%, with Q4 guidance also exceeding expectations by 2-4%. The company raised its 2027 revenue outlook to 80% year-over-year growth after securing additional supply. Piper Sandler increased its 2027 EPS estimate by 11% and 2028-2029 forecasts by 10% and 5% respectively. AMD trades at a P/E of 124, though its PEG ratio of 0.99 suggests valuation aligns with growth expectations.