Analysts Raise AMD Stock Targets Amid Surge in AI Chip Demand

Wells Fargo analyst Aaron Rakers lifted his price target for Advanced Micro Devices (AMD) to $615 per share, up from $505, noting "strong demand and pricing power in AMD's EPYC server CPU business" and projecting data‑center revenue to grow over 60% annually with AI revenue reaching tens of billions by 2027.

Cantor Fitzgerald also raised its target to $700, while Bank of America added AMD to a list of stocks expected to dominate the next decade. The upgrades helped AMD shares climb about 3.4% in pre‑market trading and contributed to a year‑to‑date gain of roughly 260%, driven by heightened demand for the company's CPUs and GPUs in AI infrastructure.

Analysts acknowledge fierce competition from Nvidia and others but see AMD's combined CPU‑GPU portfolio as a strategic advantage in the expanding AI market.