Analysts see 18-28% upside for AMD and Arm after recent declines, citing strong fundamentals and AI demand.
AMD and Arm shares have fallen 17% and 27% in recent weeks, respectively, yet both maintain buy ratings with price targets suggesting 28% and 18% upside. AMD’s Q1 FY2026 revenue rose 37.9% year-over-year to $10.25 billion, driven by a 57% increase in Data Center revenue and $1.37 non-GAAP EPS.
Broadcom’s Q3 revenue guidance of $29.4 billion includes $16 billion from AI semiconductors, up over 200% YoY. Arm reported Q4 FY2026 revenue of $1.49 billion, up 20.1%, with licensing revenue climbing 29%. CEO Rene Haas highlighted over $2 billion in projected AGI CPU demand through FY2028.
Valuation risks include AMD’s $800 million in export-control charges and Arm’s trailing P/E of 310, while Broadcom’s forward P/E of 20 and 49% operating margin present a stronger risk-adjusted case.