Advanced Micro Devices closed Monday at $623.77, up 191.26% year to date and 290.37% over one year, pushing its market value to roughly $1.02 trillion. Strategist Tony Zhang has set a $750 price target for November, betting that a company-wide price increase of about 10% across AI chips, graphics cards, and chipsets will flow through to profit, since AMD's non-GAAP gross margin already expanded to 56% in the second quarter from 43% a year earlier. Zhang's trade, a 600/750 call spread, caps his own gains at that $750 target, making it both his bull case and his ceiling. Data Center revenue rose 107% to $6.72 billion and now represents 58% of the company, and management guided third-quarter revenue to about $13 billion, plus or minus $300 million, up roughly 41% year over year. The average analyst target of $616.51 sits essentially at Monday's close, well below Zhang's call, while AMD trades at a trailing P/E of 157x and a forward P/E of 36x.
Advanced Micro Devices IncData Center revenue rose 107% to $6.72B, gross margin expanded to 56%, and Q3 revenue guidance of ~$13B (up ~41% YoY) supports the bull case.
