Melius upgrades AMD to Buy on ‘sustainable surge’ in inferencing

As previously reported, Melius Research upgraded AMD (AMD) to Buy from Hold with a price target of $175, up from $110, citing the view that “many things have changed for the better since the beginning of the year.” Investors are about to envision even bigger GPU figures in 2026-2028 given a “sustainable surge in inferencing,” argues the analyst, who believes inferencing is “much bigger than expected.” .AMD’s GPU roadmap has garnered more interest globally, especially for the MI400 series coming next year that includes rack scale configurations, says the analyst, who thinks AMD’s EPS power can top $8 within two years.