AMD shares have the longest growth streak in almost a year. What are investors waiting for?

Quotes of chipmaker Advanced Micro Devices (AMD) showed the longest series of growth for almost a year. Analysts count on a strong quarterly report of the company and a possible increase in forecasts, but further dynamics of securities will depend on what signals AMD will give on AI-direction, notes MarketWatch. Investors are waiting for comments on the launch of Helios platform and scaling of server business, which has already become a key driver of revenue growth. At the same time, the market is still cautious in assessing the competitiveness of AMD's GPUs.

Shares of chipmaker Advanced Micro Devices have posted gains for seven consecutive trading sessions, the longest streak since February 2025, according to Dow Jones Market Data. The stock was adding another 2.2% at the Jan. 22 premarket.

Investor interest is growing amid optimistic analysts' expectations ahead of AMD's fourth-quarter financial results release, which is scheduled for February 3, 2026, MarketWatch reports. Wall Street will be closely watching management's comments on the timing of the company's first Helios rackmount platform (a complete solution for data centers needed for AI deployments) and the Instinct MI455 line of graphics gas pedals, as well as updates on the customer base for those products, the publication adds. The focus will also include new revenue guidance for the AI business and an assessment of the supply/demand balance for AMD's traditional server chips.

KeyBanc Investment Bank, ahead of AMD's report , reiterated a buy recommendation on the company's shares and a target price of $270. This implies a potential upside of 8.4%. KeyBanc analyst John Vinh believes that AMD's quarterly results will be better than market expectations, and the company will revise its revenue forecast, MarketWatch reports. The key driver, in his estimation, remains strong demand for AMD's server processors, including the latest Turin data center CPU.

As Vinh notes, AMD has virtually sold out all of its planned server CPU volume for this year and could raise average selling prices by 10-15% as hyperscalers look to lock in production capacity in advance. Earlier this month, the analyst noted that AMD's server CPU segment could grow by at least 50% in 2026 amid robust demand for chips critical for AI data center infrastructure, MarketWatch writes.

Despite the current rally, according to Vinh, Wall Street's attitude toward AMD remains "mixed" due to uncertainty surrounding the competitiveness of its GPUs compared to Nvidia's solutions."Bulls are encouraged by AMD's progress in competing with Nvidia in AI, as well as the company's strong position in the server CPU - central processing unit segment," the analyst notes. Skeptical investors, for their part, question whether AMD will be able to deliver the required shipment volumes and claimed performance levels of its GPUs.

Bernstein analyst Stacey Rasgon raised his target price on AMD shares to $225, while maintaining a neutral stance. His new target is below the company's current stock price. At the same time, Rasgon raised his estimate of AMD's revenue for the fourth quarter, including due to a more optimistic view on the dynamics of the company's server business. The analyst projects sales growth of the EPYC processor lineup, including the fifth-generation Turin processor, of about 30% this year.

AMD "at least" has an agreement with OpenAI to supply Helios racks starting in the second half of the year, Rasgon said, but the startup remains the only major customer so far. As such, AMD's entire AI investment story depends largely on how this partnership plays out and whether the company manages to attract meaningful new customers for Helios, MarketWatch warns.

However, with scaling of the OpenAI project expected closer to the second half of the year, pressure on the near-term outlook for AMD's AI business may be limited, the publication said. In its core business, the company is highly likely to benefit from the strength of its server segment and market share gains, which could keep investor sentiment positive while the market continues to assess the prospects for its AI chips, according to Bernstein .

Most on Wall Street believe in AMD's long-term potential, MarketWatch shows. 46 analysts recommend buying its stock, while another 12 think it should be held in a portfolio. There is no advice to sell. The stock's average target price implies a potential upside of 16% from its closing level on Jan. 21.

This article was AI-translated and verified by a human editor