Erste Group upgraded $AMD to Buy from Hold because it sees stronger data center demand, better profitability, and a more attractive product setup than before


The note says AMD expects Q1 2026 revenue growth of 32% year over year, driven by rising demand for high performance data center CPUs and GPUs
The analyst also highlighted AMD’s improving operating margin trend and argued that the valuation still looks attractive, with the article citing a PEG ratio of 0.49 and saying AMD appears undervalued based on fair value calculations
A key part of the bullish view is the upcoming Instinct MI450, built on 2nm and expected in H2 2026. Erste thinks its higher memory capacity versus NVIDIA’s upcoming Ruby products could support strong demand
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