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<Research> HSBC Research Raises Advanced Micro Devices, Inc. (AMD.US) TP to USD380; 1Q26 Results and 2Q26 Guidance Beat
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HSBC Research issued a report noting that despite supply-side constraints, Advanced Micro Devices, Inc. (AMD.US) delivered 1Q26 results and 2Q26 guidance that beat expectations, driven by strong momentum in server CPUs. The overall total addressable market for server CPUs continues to expand, although capacity constraints remain. The report stated that AMDs 1Q results exceeded expectations, mainly supported by its client and gaming businesses. Revenue reached USD10.3 billion, above HSBC Research and market estimates of USD10.1 billion and USD9.9 billion, respectively, and also higher than managements guidance of USD9.8 billion. Although demand for server CPUs remained robust, data center revenue of USD5.8 billion was solid, with the degree of outperformance relatively moderate compared with the client and gaming segments. Gross margin was 55.4%, slightly above HSBC Research and market forecasts as well as managements guidance of 5555.3%. Operating margin was 24.8%, also above HSBC Research and market expectations and managements guidance of 23.924.2%. HSBC Research raised its EPS forecasts for 2026 and 2027 by 6% and 5%, respectively, to reflect the better-than-expected guidance and constructive outlook. The TP was lifted to USD380 from USD340. The Hold rating was maintained, as the broker believes there remains certain downside risk to earnings in 2H26 due to supply capacity constraints.(ha/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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