AMD May ‘Substantially’ Lift Its AI Forecast for 2028 Today. What Does This Mean for AMD Stock?

AMD heads into its Financial Analyst Day with expectations running high. CEO Lisa Su has hinted at raising the company’s $500 billion AI forecast as the chipmaker looks to scale its data center business amid surging demand for artificial intelligence.

Advanced Micro Devices (AMD) heads into its Financial Analyst Day with momentum and rising expectations around artificial intelligence. The chipmaker just posted stronger-than-expected earnings and raised guidance for the current quarter. CEO Lisa Su told analysts that customers are planning “substantially” larger CPU buildouts to meet AI demand and hinted that AMD could lift its $500 billion AI data-center forecast for 2028.

AMD shares have climbed 102% this year, far outpacing the Nasdaq’s 22% rise (QQQM). Now, investors want to see if AMD can turn AI optimism into numbers that support that rally. The event, starting at 1 p.m. Eastern in New York, is a key moment to reinforce its credibility as the most serious challenger to Nvidia (NVDA).

AMD Extends Its Reach in the AI Market

Management is expected to update the company’s long-term growth plan, focusing on the AI business and broader data center outlook. Any increase to the $500 billion 2028 forecast would confirm AMD’s view that its MI-series accelerators can capture a larger slice of the market over the next three years.

Investors also want clarity on how AMD’s GPU and CPU businesses balance demand for training and inference workloads. More visibility on manufacturing, customer adoption, and software readiness could turn general optimism into confidence in AMD’s execution.

OpenAI Partnership Strengthens the Story

AMD’s long-term supply deal with OpenAI gives investors something tangible. The agreement calls for six gigawatts of GPU capacity, starting with one gigawatt of rack-scale MI450 servers in the second half of 2026. This timeline offers rare visibility into future AI revenue.

The partnership shows AMD can compete at the highest level of the AI stack. If the company confirms healthy pricing and margins on that deal, it strengthens the case that AI can become a major profit driver rather than a speculative side bet.

What Wall Street Wants to Hear

Analysts already view today’s event as a potential catalyst for the stock. Stifel’s Ruben Roy said AMD is likely to share “more detail on its technology roadmap, customer traction and market sizing.” To keep its rally intact, AMD must back up its forecasts with concrete milestones on bookings, product rollouts, and manufacturing capacity.

Execution will matter more than enthusiasm. Investors want a roadmap that bridges today’s orders with the “tens of billions” in AI revenue Su says are coming by 2027.

To sustain momentum, the company needs to pair a bigger market forecast with a credible delivery timeline and improved margins. If Su and her team can do that, the Analyst Day could extend AMD’s breakout year and cement its position as Nvidia’s most capable rival in the AI race.

Is AMD a Buy, Hold, or Sell?

According to TipRanks, Wall Street analysts remain broadly bullish on AMD’s long-term prospects. Out of 37 analysts tracked in the past three months, 27 rate the stock a Buy and 10 maintain Hold ratings, giving it an overall consensus of Moderate Buy.

The average 12-month AMD price target sits at $278.09, representing a 13.98% potential upside from the current price.

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