Advanced Micro Devices (AMD) is trading near $633.91, just below its 52-week high of $645.46, after Stifel raised its price target to $700 from $635 and maintained a Buy rating. The move highlights growing confidence in AMD’s server CPU business and AI chip pipeline, even as CEO Lisa Su says demand is running ahead of supply.
Speaking to reporters in Taipei, Su said AMD has increased supply and capacity in 2026, but “demand is even higher than our supply.” She added that a larger supply boost is planned for 2027. Su’s Asia trip includes meetings with TSMC, Foxconn, Samsung, and SK Hynix as AMD works to secure advanced wafer and memory capacity for its Instinct GPUs.
Stifel analyst Ruben Roy pointed to ecosystem capacity and DRAM supply, rather than demand, as the main constraints on growth. He also highlighted early MI450 revenue and fourth-quarter margins as key items to watch.
AMD’s market capitalization now sits at about $1.03 trillion, supported by a roughly 285% gain over the past year. The stock’s climb above $600 has also cleared one condition in AMD’s October 2025 agreement with OpenAI. Under that deal, OpenAI committed to deploy 6 gigawatts of AMD GPUs over multiple hardware generations, starting with a 1-gigawatt rollout of Instinct MI450 chips in the second half of 2026. AMD issued OpenAI a warrant for up to 160 million shares that vests in tranches, but full vesting still requires OpenAI to meet technical and business goals for broad chip deployment.
AMD has near-identical arrangements with Meta and Anthropic. The Meta deal, announced February 24, 2026, covers another 6 gigawatts and a 160-million-share warrant. Anthropic’s July 22 agreement adds up to 2 gigawatts, bringing total orders to about 14 gigawatts. AMD has also committed to invest up to $5 billion in Anthropic.
Second-quarter revenue reached $11.5 billion, with data center sales up 107% year over year to $6.7 billion. Su has said data center sales should double in 2027, and AMD expects to substantially increase supply that year. Still, some investors remain cautious about potential overcapacity, rising debt, and regulatory hurdles across the chip industry.
Rosenblatt and Cantor Fitzgerald also reiterated bullish ratings on AMD with price targets matching Stifel’s $700, citing the World Labs acquisition and upcoming Helios shipments. AMD recently agreed to buy AI startup World Labs for $8.2 billion to expand its model offerings.
