AMD Stock Has Surged 114% YTD; Does it Have More Room to Run?

Chipmaker Advanced Micro Devices (AMD) is now being viewed as one of the major AI (artificial intelligence) plays after being considered a laggard for a long while. AMD stock has rallied 114% year-to-date, driven by demand for its server CPUs (central processing units) and GPUs (graphics processing units) amid the ongoing AI wave. While AMD bulls see continued momentum, backed by strength in the data center business, some analysts argue that the optimism about future growth is already priced into the stock. Currently, Wall Street’s average stock price target indicates modest downside risk from current levels.

Let’s look at the views of some analysts on AMD stock.

Analysts’ Views on AMD’s Growth Potential

Following the market-beating Q1 print, Goldman Sachs analyst James Schneider upgraded AMD stock to Buy from Hold and raised his price target to $450 from $240. The 5-star analyst turned bullish, given strength in the server CPU business from agentic AI and upside in data center GPUs in 2027 and beyond. Schneider expects AMD to massively benefit from enterprise agentic AI adoption, where he sees strength in x86. Also, the analyst sees upside to AMD’s data center GPU revenue, with a 6 GW deployment opportunity at Meta Platforms (META) and a steady share at Microsoft (MSFT). He awaits more insights into OpenAI’s deployments.

Additionally, Benchmark analyst Cody Acree increased the price target for Advanced Micro Devices stock to $485 from $325 while maintaining a Buy rating. The 5-star analyst noted that the Q1 print and earnings call significantly improved investor confidence in the scope of AMD’s AI-driven growth. He added that the Q1 beat, solid Q2 outlook, a doubling of the projected server CPU CAGR (compound annual growth rate) and TAM (total addressable market) estimates, and commentary on multi-year Instinct GPU deployments indicate a larger earnings base than investors’ expectations. Acree highlighted that AMD is continuing to see increased adoption of its AI CPU and GPU compute stack.

Meanwhile, RBC Capital analyst Srini Pajjuri increased his price target for AMD stock to $400 from $325, while reiterating a Hold rating. The 5-star analyst noted the company’s upbeat Q1 results and outlook, with strength in server CPU revenue, driven by Agentic AI. Pajjuri added that AMD expects the server CPU market to grow at a CAGR of more than 35%, reaching a TAM of $120 billion by 2030, double the prior projection. He observed that management sounded incrementally positive about the AI GPU business for 2027.

While Pajjuri is positive on CPU growth, he cautioned about growing competition from in-house ARM Holdings (ARM)-based solutions. Also, at a valuation of 35x 2027 EPS, the analyst expects further upside to be driven mainly by strong MI455/Helios ramps. “We view component supply, rack-scale execution, and competition as potential challenges and would wait for evidence of Helios volume ramps before getting more constructive,” said Pajjuri.

Is AMD Stock Expected to Rise?

Currently, Wall Street has a Strong Buy consensus rating on Advanced Micro Devices stock based on 27 Buys and eight Holds. The average AMD stock price target of $442.94 indicates 3.5% downside risk from current levels.