AMD shares moved higher in trading on Thursday after fresh analyst upgrades and reports of a potential manufacturing partnership with Samsung.
New initiatives in artificial intelligence and quantum computing also reinforced optimism around the chipmaker’s long-term growth prospects.
The stock gained 3.5% at the time of writing.
Investor sentiment also benefited from reports that Samsung could partner with AMD on chip production as Taiwan Semiconductor Manufacturing Co.’s capacity remains constrained, potentially providing AMD with additional manufacturing flexibility for its AI chips.
The latest gains add to a strong run for the stock as Wall Street increasingly views AMD as one of the key beneficiaries of expanding artificial intelligence infrastructure spending.
Analysts raise targets on expanding AI opportunity
Several Wall Street firms have raised their price targets on AMD in recent weeks, citing growing confidence in the company’s position across AI infrastructure markets.
Bernstein increased its price target to $600 from $525 and maintained an Outperform rating.
The firm argued that the next phase of artificial intelligence could substantially expand demand for server central processing units, an area where AMD already has a strong presence through its EPYC processors.
Bernstein now estimates the global server CPU market could reach $223 billion by 2030, significantly above its prior estimate of $137 billion.
The firm described the shift as a “CPU renaissance,” arguing that agentic artificial intelligence workloads will require substantially more general-purpose computing capacity alongside accelerators.
Baird raised its target to $625 from $300, citing stronger AI server positioning and potential gains in the data-center chip market.
Citi upgraded AMD to Buy from Neutral and raised its target to $575 from $460, saying investors are underestimating the company’s graphics processor opportunity and its potential to benefit from artificial intelligence spending by Meta Platforms.
Bank of America lifted its target to $560 from $500, identifying AMD as one of its preferred CPU investments as demand for AI inference and server processors expands.
Barclays raised its target to $500, while Goldman Sachs increased its price objective to $450 and upgraded the shares to Buy.
Agentic AI strengthens AMD’s server CPU outlook
Analysts increasingly believe agentic AI applications could materially change the economics of artificial intelligence infrastructure.
Unlike traditional AI workloads that focus heavily on model training and inference, agentic systems can plan tasks, search databases, coordinate workflows, and execute multiple actions autonomously.
Bernstein argued that such workloads still require graphics processors but also depend heavily on CPUs for orchestration, memory management, and general-purpose computing.
The firm believes CPU requirements in AI systems could increase significantly, potentially moving from earlier assumptions of one CPU supporting four to eight graphics processors toward ratios approaching one-to-one in some inference-intensive applications.
Because AMD already holds a strong competitive position in server CPUs through EPYC, analysts increasingly see its processor business as becoming central to the company’s AI investment thesis.
Manufacturing and partnerships broaden growth story
AMD’s latest initiatives extend beyond conventional AI infrastructure.
The company partnered with quantum technology firm EigenQ, which is pursuing a $3 billion special-purpose acquisition company transaction.
The collaboration will focus on post-quantum cryptography, quantum-safe communications, and sensing technologies aimed at defense, industrial, and strategic applications.
AMD has also been actively expanding its AI footprint through investments and partnerships.
Recently, the company entered a multi-year agreement with Rackspace Technology for a phased deployment of 30 megawatts of AMD-powered computing infrastructure between 2026 and 2028.
The deployment will utilize Instinct graphics processors and EPYC CPUs to support regulated enterprise and healthcare AI applications.
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