AMD Price Targets Raised by Wall Street on AI Product Momentum and Expanded Market Forecast

Several Wall Street brokerages have raised their price targets for Advanced Micro Devices Inc. following the company's "Advancing AI" event. Analysts from Jefferies, BofA Securities, and Robert W. Baird & Co. cited the launch of a new AI system, expanded customer deals, and a much larger market forecast as key drivers for their increased optimism.

Analyst Upgrades

The investment banks adjusted their outlooks and valuations for the semiconductor firm:

• Baird more than doubled its price target to $1,250 from $625, maintaining an "outperform" rating. The firm said it now models $147 billion in AI GPU revenue for AMD by 2030, assuming a 15% market share.
• Jefferies lifted its price target to $640 from $515, reiterating a "buy" rating.
• BofA Securities increased its price objective to $620 from $560, also keeping its "buy" rating. The bank's valuation is based on 47 times its 2027 non-GAAP earnings per share (EPS) estimate.

BofA Securities noted that AMD is transitioning from a component vendor into a "full-stack, rack-scale accelerator systems supplier," a strategic shift that underpins the positive revisions.

Helios Launch and Customer Wins

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A central focus of the analyst notes was AMD's new Helios rack-scale system, which is now in full production with deployments starting in the third quarter, according to BofA and Baird. The system integrates 72 MI455X GPUs with AMD's EPYC CPUs and other networking components, offering a complete solution for AI infrastructure.

AMD also showcased deepening commitments from major AI players, including OpenAI, Meta, Microsoft, and Oracle. A significant expansion of its partnership with Anthropic was highlighted, with the AI firm set to deploy up to 2 gigawatts of AMD's MI455 GPUs via Helios systems. Baird and Jefferies reported that AMD has also committed to a strategic investment of up to $5 billion in Anthropic.

Expanding Market Opportunity

Supporting the bullish analyst sentiment, AMD significantly raised its long-term total addressable market (TAM) forecasts at the event. According to BofA, the company now sees the total compute market growing to over $2 trillion by 2030, a sharp increase from its previous forecast of $1 trillion.

The forecast for the AI accelerator market was raised to $1.4 trillion by 2030, up from a prior estimate of $500 billion by 2028. This expanded market view provides a larger runway for growth, justifying the higher valuations from analysts.