Analysts Lift AMD Price Targets Citing Agentic AI

In June, analysts at Barclays, UBS, Mizuho and Bernstein raised price targets on Advanced Micro Devices, citing growing demand for server central processing units tied to agentic artificial intelligence.

Barclays analyst Tom O’Malley raised his AMD target to $665 from $500 and kept an Overweight rating. O’Malley wrote that ‘CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI.’ He modeled the standalone server CPU market approaching roughly $200 billion by 2030.

UBS increased its target to $670 from $455 and maintained a Buy rating. UBS raised its 2030 AMD server CPU revenue forecast to $50 billion from $41 billion, citing early customer purchases of CPU-heavy racks for AI workloads that do not rely solely on GPU clusters.

Mizuho raised its target to $615 from $515 with an Outperform rating and flagged potential supply constraints for CPUs and memory into 2027 that could affect pricing. Bernstein bumped its target to $600 from $525, kept an Outperform rating and revised its 2030 server CPU market estimate to about $223 billion from $137 billion.

Analysts describe agentic AI as systems that perform sequences of tasks, coordinate different models and run persistent software processes. These workloads increase requirements for coordination, routing and software execution around GPUs, which raises the number of server CPUs required per GPU in many deployments.

AMD shares have climbed more than 130% year to date. The average Wall Street price target remains below the stock’s recent trading level. Market participants will watch AMD’s Advancing AI event in July and the company’s second-quarter earnings report in early August for evidence that higher CPU demand is translating into revenue.