Advanced Micro Devices (AMD) stock trended higher in pre-market trading as it continued to gain support from Wall Street. In a new report, Aletheia Capital analyst Stefan Chang reiterated a Buy rating on the stock and maintained a $330 price target, implying 63% upside from current levels.
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He noted that a new type of AI, called “agentic AI,” is expected to expand in the coming years, and these systems may rely more on CPUs to run tasks. Since AMD is a leader in server CPUs, it is well positioned to benefit from this trend.
Why the Analyst Is Bullish on AMD
Chang noted that AMD is no longer just a secondary player in AI chips. While the company has been gaining share in the GPU market, he now sees it evolving into a broader AI compute provider.
Importantly, he believes AMD has two strong growth drivers. The first is its server CPU business, where revenue is expected to grow at a fast pace over the next few years. The second is its data center GPU segment, led by its MI series chips.
The analyst expects AMD’s server CPU revenue to grow at a strong rate through 2028. At the same time, he sees data center revenue rising sharply, from about $17 billion in 2025 to between $58 billion and $77 billion by 2027–2028.
Despite the positive outlook, Chang believes that weaker demand in end markets, execution challenges, and broader geopolitical issues could affect the business.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy based on 21 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $284.96, representing a potential 41.08% upside for the shares.
