Evercore ISI Raises Price Target on Advanced Micro Devices (AMD) Amid AI Market Shift
Quick Take
Evercore ISI increases AMD's price target due to AI market developments.
Key Points
- AMD benefits from growing AI demand.
- Evercore ISI raises target to reflect market trends.
- Investors optimistic about AMD's future prospects.
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~2 min readVardah Gill
2 min read
With a 5-year average revenue growth rate of 32.68%, Advanced Micro Devices, Inc. (NASDAQ:AMD) is included among the 11 Best Long Term US Stocks to Buy Right Now.
On May 19, Evercore ISI raised its price recommendation on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $579 from $358. It reiterated an Outperform rating on the shares. After completing a round of Q1 AI channel checks, the firm said one of the biggest themes it heard was that AI workloads are expected to shift from a training-focused market toward an inference-led market by the end of 2026. The firm also noted that the transition is putting greater focus on cost-per-token, return on investment, and total cost of ownership. According to Evercore, that trend is increasing hyperscaler interest in internally developed ASICs and alternative accelerators.
On May 18, Citi raised its price goal on AMD to $460 from $358. It maintained a Neutral rating on the stock. Citi introduced a new CPU total addressable market model that includes general-purpose CPUs, AI head nodes, and agentic CPU applications. The firm now expects the market to grow 35% annually and reach $132 billion by 2030, driven in part by projected 185% annual growth in agentic CPUs. Citi said the higher price target reflects updates to its model.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing and artificial intelligence. Its business segments include Data Center, Client and Gaming, and Embedded.
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— Originally published at finance.yahoo.com
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