AMD stock falls 13% after earnings beat, Morgan Stanley lifts 2027 forecast
AMD shares dropped 13% after a strong Q3 report, while Morgan Stanley raised its 2027 revenue and earnings outlook and lifted its price target.
Key points
- AMD shares fell 13% in morning trade, 13.44% overall, biggest decline in Technology Equipment sector.
- Q3 revenue $13.377B, up 44.7% YoY, beating $13.096B expectation; non‑GAAP EPS $2.09 vs $1.95 expected.
- Morgan Stanley raised 2027 revenue forecast to $98.94B, EPS outlook to $18.77, and price target to $550.
AMD stock traded at $424.36 and fell 13% in morning trading on November 5, 2026.
The same day the stock declined 13.44% overall, making it the largest decliner in the Technology Equipment sector.
AMD’s third‑quarter earnings report posted revenue of $13.377 billion, a 44.7% year‑over‑year increase and a 16% sequential rise, beating the market expectation of $13.096 billion.
Non‑GAAP earnings per share were $2.09, exceeding the market expectation of $1.95, and non‑GAAP gross margin was 55.9%, in line with expectations.
Data‑center revenue reached $8.546 billion, up 96.9% year‑over‑year and 27.2% sequentially.
Morgan Stanley raised its fiscal‑year 2027 revenue forecast for AMD from $89.13 billion to $98.94 billion and its non‑GAAP EPS outlook from $15.64 to $18.77.
The firm also increased its price target to $550 from $510 while maintaining a “Market Perform” rating.
Morgan Stanley noted that AMD’s server‑CPU shipment volume grew approximately 50% year‑over‑year in the first three quarters of 2026.
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