AMD Stock Jumps on Raised AI Forecast and Analyst Price Target Hike

Shares of Advanced Micro Devices (NASDAQ: AMD) climbed more than 3.4% in early trading to $523.16, bucking a broader market downturn. The rally was fueled by bullish commentary from the company's management at the Citi Global TMT Conference, where they outlined an aggressive growth forecast for the artificial intelligence market.

Ambitious AI and Data Center Targets

AMD's management presented a significantly expanded view of its future opportunities, providing investors with new long-term projections. The company now sees the potential total addressable market (TAM) for AI reaching $2 trillion by 2030, a substantial upward revision from previous estimates.

Furthermore, AMD expects its data center business, a key growth driver, to double in size to approximately $70 billion by 2027. The company projects that AI GPUs will account for just over $40 billion of that total, with server CPUs making up the remainder.

Wall Street Responds

Following the presentation, analysts at CLSA raised their price target on AMD shares to $710 from a previous $575, while maintaining an "Outperform" rating. The firm also increased its earnings per share (EPS) forecasts for fiscal years 2027 and 2028 by 25% to 29%.

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CLSA cited expectations that AMD will ship more of its MI-455 GPUs at higher prices than previously modeled. The broader analyst community remains positive on the stock, with 41 "Buy" ratings and no "Sell" recommendations on Wall Street, according to the source. Bullish sentiment was also observed in the options market through significant call buying activity.

Outperforming a Weaker Market

AMD's advance was particularly notable as it occurred while major U.S. indices were in negative territory, with the S&P 500 down 0.3% and the Nasdaq Composite falling 0.4%. This divergence suggests the move was driven by company-specific catalysts rather than broad market trends.

The stock's performance is part of a wider rotation into semiconductor companies with clear paths to AI profitability. While peers like Micron, Nvidia, and Intel also saw gains, AMD's was a standout. The stock hit an intraday high of $524.29, well above its previous close of $505.74.