Advanced Micro Devices (AMD) stock has climbed more than 2.5% in recent trading, buoyed by a series of bullish analyst upgrades. UBS raised its price target to $670, Barclays to $665, Mizuho to $615, and Bernstein to $600. The common theme is a growing conviction that central processing units (CPUs) will play a central role in agentic AI workloads, driving demand beyond the current GPU frenzy.
Barclays analyst Tom O’Malley argued that “CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI,” and sees the standalone server CPU market approaching $200 billion by 2030. UBS went further, forecasting AMD’s server CPU revenue could hit $50 billion by 2030, up from a prior estimate of $41 billion.
Adding to the optimism, research firm Gartner named AMD “the company to beat” in enterprise AI server CPUs. The chipmaker’s Q1 results impressed, with revenue of $10.25 billion beating estimates and growing 37.8% year-over-year. Despite a forward P/E of 71x, well above Nvidia’s 23x, analysts see room for growth as AMD’s data center segment now accounts for 56% of revenue. The upcoming MI450 chip, built on TSMC’s 2nm process, is expected to challenge Nvidia’s Vera Rubin platform and could cement AMD’s position in the AI hardware race.
