- Raymond James analyst Simon Leopold upgraded AMD to Strong Buy from Outperform, raising the price target to $641 from $565, implying a 40% upside from current levels.
- In response to the upgrade, AMD stock rose 5% in afternoon trading.
- AMD delivered record Q2 results with non-GAAP EPS of $1.66 and revenue of $11.5 billion, beating expectations.
- The company unveiled its next-generation AI chips, including the Instinct MI450 Series GPUs and the 6th Gen EPYC Venice CPUs, designed for large AI models.
- AMD announced major AI deployments with Microsoft and Anthropic, including a significant investment in Anthropic.
Raymond James analyst Simon Leopold upgraded AMD to Strong Buy and raised the price target to $641, suggesting a 40% upside. This upgrade follows AMD's record Q2 results, where it posted non-GAAP earnings per share of $1.66 and total revenue of $11.5 billion, exceeding expectations.13
Leopold noted that AMD's powerful AI chips position it as a key player in the growing server CPU market, projected to reach $201 billion by 2030 with a 44% five-year compound annual growth rate. He emphasized that AMD offers the strongest combination of direct earnings leverage, datacenter positioning, and market-share gains.4
Despite competitive risks, including in-house chip development by customers and SpaceX's exclusive commitment to Nvidia, AMD's long-term outlook remains bullish. The company is set to benefit from major AI deployments with OpenAI, Meta, and Microsoft, alongside significant growth in data center revenues, which are expected to double by 2027.56
AMD's recent announcements include the unveiling of its next-generation AI chips, the Instinct MI450 Series GPUs and 6th Gen EPYC Venice CPUs, designed for large AI model training. The company also plans to invest up to $5 billion in Anthropic, marking a significant strategic move in the AI infrastructure market.
“Leopold's new target exceeds the average peer target of $613, with 72% of analysts rating AMD a Buy or Strong Buy. He sees the server CPU market growing at a 44% CAGR to $201 billion by 2030, citing AMD's AI chips and datacenter positioning.”
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