Advanced Micro Devices (AMD) stock has remained one of the hottest semiconductor plays tied to the AI boom, with Wall Street analysts continuing to raise expectations for the chipmaker. As demand for AI infrastructure expands beyond GPUs and into CPUs powering agentic AI workloads, some analysts believe AMD still has significant upside ahead.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Among the most bullish analysts covering AMD is Robert W. Baird analyst Tristan Gerra. The five-star analyst recently reiterated a Buy rating on AMD stock while boosting his price target to a Street-high of $625 from $300. Gerra’s updated price target implies a potential 39.89% upside for the shares.
Why Is Gerra So Bullish on AMD Stock?
Gerra’s optimistic take on AMD is focused on the growing importance of CPUs in the AI development market. While much of the AI boom has surrounded GPUs used to train generative AI models, agentic AI systems are expected to rely more heavily on CPUs to handle workloads, retrieve data, and carry out other tasks.
According to Gerra, this shift could dramatically expand the total addressable market for CPUs over the next several years. The analyst forecasts that the CPU market will grow at a 35% compound annual growth rate over the next three to five years, eventually reaching $120 billion by 2030. Gerra also expects AMD’s data center revenue to grow 70% year-over-year during the second quarter as AI infrastructure spending remains strong.
AMD’s expanding AI portfolio is another reason analysts remain bullish. In addition to its EPYC server CPUs and Instinct AI accelerators, the company is preparing to launch its Helios AI server rack solution later this year, allowing AMD to better compete in the AI data center sector.
AMD Stock Movement Today
AMD stock was down slightly on Wednesday, but was still up 108.02% year-to-date. The shares have also gained 280.81% over the past 12 months.
AMD stock trading activity today was muted at 13.63 million shares, compared to a three-month average daily trading volume of about 32.47 million shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 27 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $449.21, representing a potential 0.8% upside for the shares.
