AMD’s Microsoft Win Signals Dominance Over NVIDIA and Our Price Target Reflects It

2 months ago 34

Vandita Jadeja

Wed, July 22, 2026 astatine 11:30 AM CDT 4 min read

Quick Read

Microsoft Azure joins OpenAI and Meta connected AMD's AI lawsuit roster, backing our BUY standing and $564.64 terms people implying 12% upside.
NVIDIA's Rubin level and Broadcom's ASIC advantages endanger AMD's hyperscaler share, amplifying hazard from its stretched 164x trailing P/E.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and AMD didn't marque the cut. Grab the names FREE today.

The AI infrastructure communicative astatine Advanced Micro Devices (NASDAQ:AMD) keeps compounding. After landing a landmark 6 gigawatt OpenAI deployment past autumn and a 6 GW Meta concern earlier this year, AMD added Microsoft to the marquee.

A glowing bluish and purple integer illustration shows a cardinal encephalon icon labeled 'CENTRAL AI CORE'. Four surrounding glowing quadrate icons, labeled HBM (stacked chips), DRAM (RAM stick), eSSD (processor-like chip), and NAND (chip with circuit committee pattern), are connected to the halfway by luminous information streams, each acceptable wrong a dark, blurred information halfway inheritance with galore glowing bluish and purple lights.

On July 20, 2026, the companies announced that Microsoft Azure volition deploy the AMD Helios Rackscale Solution with Instinct MI455 GPUs, Venice CPUs, and Pensando DPUs for AI inference. The lawsuit database rivals NVIDIA's (NASDAQ:NVDA).

Our 24/7 Wall St. terms people for AMD is $564.64, implying 12.13% upside from the existent $503.57 quote. We complaint the banal a bargain with a 90% assurance level.

24/7 Wall St. Price Target Summary

The Microsoft Announcement Sits connected Top of a Cooling Chart

AMD has risen 135.14% twelvemonth to day and 220.77% implicit the trailing year. Shares are 8% beneath the $584.73 52-week high. The past period has been rough, down 6.29% arsenic traders took profits. That pullback is the introduction the exemplary is pricing in.

Fundamentals stay strong. Q1 FY2026 gross of $10.253 cardinal grew 37.85% twelvemonth implicit twelvemonth and bushed estimates by 3.41%, with non-GAAP EPS of $1.37 topping consensus. Data Center gross did $5.775 billion, up 57%. Free currency travel surged to $2.566 billion. Management guided Q2 to $11.2 billion, astir 46% growth.

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Why Bulls See a Breakout Ahead

The bull lawsuit rests connected Lisa Su's line: "Customer engagement astir MI450 Series and Helios is strengthening, with starring lawsuit forecasts exceeding our archetypal expectations." Between OpenAI (6 GW), Meta (6 GW), Oracle's 27,000+ node MI355X cluster, HUMAIN's 500 MW deployment, and the Azure Helios rollout, AMD has visibility that did not beryllium a twelvemonth ago.

China Renaissance raised its terms people to $631 from $562 connected July 20, reiterating Buy. Our bull-case script puts AMD astatine $629.34 implicit 12 months, a 24.98% return, with a highest astir $635.75 adjacent June if MI450 ramps arsenic guided.

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