1 No-Brainer Artificial Intelligence (AI) Stock to Buy Before May 5 (Hint: It Has Jumped 59% in April)
Advanced Micro Devices' (AMD) share price surged 59% in April, and is expected to jump higher after its Q1 results on May 5, as analysts forecast revenue of $9.9 billion and earnings growth of 33%. AMD's guidance is expected to exceed expectations due to healthy revenue growth and margin gains, driven by contracts with OpenAI and Meta Platforms.
Advanced Micro Devices' (AMD) share price rose 59% in April. The company is set to release its Q1 results on May 5. AMD management guided for $9.8 billion in Q1 revenue, a 32% increase year-over-year, and non-GAAP gross margin is expected to increase to 55%. Analysts forecast revenue of $9.9 billion and earnings growth of 33% to $1.28 per share. AMD will start fulfilling massive contracts with OpenAI and Meta Platforms in the second half of 2026, deploying 6 gigawatts of data center computing capacity. Rising CPU prices, driven by supply shortages, could also boost AMD's bottom-line growth. Server CPU prices have increased by 20% since last month, according to TrendForce. AMD's earnings are expected to jump 61% this year to $6.71 per share, and its stock could surge 79% to $598 by 2028, driven by growth from these contracts.
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