Advanced Micro Devices (AMD) recently delivered stronger-than-expected second-quarter results, driven by solid AI-led demand for its CPUs and GPUs. Although AMD stock came under pressure following the earnings release, the company's updated long-term outlook suggests its AI-driven growth story is becoming even more compelling. This stronger guidance has led most Wall Street analysts to stay bullish on the stock.
At its Financial Analyst Day in November 2025, AMD laid out a three-to-five-year growth framework, targeting a revenue compound annual growth rate (CAGR) of more than 35% and adjusted EPS exceeding $20. However, management's latest commentary indicates that those targets may now prove conservative.