Bernstein Picks AMD Over Super Micro Ahead of Earnings

What happened

Bernstein analyst Stacy Rasgon rates AMD a Buy with a $650 price target and forecasts third-quarter revenue of about $13.1 billion and adjusted earnings of $1.96 per share. Analyst Mark Newman reiterated a Hold rating on Super Micro with a $42 price target.

Confirmed

Global impact / market context

A Buy rating signals Bernstein expects AMD's server chips and AI graphics processors to drive revenue growth, while the Hold on Super Micro reflects doubts about its ability to meet forecasts. This may steer investor money toward AMD and away from Super Micro ahead of earnings.

Analyst inference

Both companies sell AI server hardware, so their earnings will show whether demand for AI infrastructure is holding up. Bernstein sees AMD server sales growing over 80% in the second half of 2026, but warns higher memory prices could squeeze AMD's profit per sale.

Analyst inference

What to watch

1. AMD's earnings release, and whether reported revenue and adjusted earnings per share match Bernstein's forecasts of about $13.1 billion and $1.96, respectively. Confirmed
2. Super Micro's results, and whether the company breaks its recent pattern of missing revenue and profit projections despite strong demand for AI servers, which would test Bernstein's Hold case. Analyst inference
3. AMD's gross margin, which means the share of revenue left after production costs. Bernstein expects roughly 54% in 2027, below Wall Street's 55.4%, as memory prices rise. Analyst inference

Evidence

• gurufocus.com