Advanced Micro Devices (AMD) Stock: Should You Buy After Analyst Upgrades?

Key Highlights

• Evercore ISI boosted AMD’s price objective to $579 from $358, maintaining an Outperform rating following first-quarter AI supply chain analysis.
• The chipmaker captured 220 basis points in server CPU market share during Q1, bringing its total to approximately 24%.
• Citi increased AMD’s price objective to $460 from $358, forecasting a “CPU renaissance” fueled by artificial intelligence computing demands.
• Lisa Su, AMD’s chief executive, held discussions with Chinese Vice-Premier He Lifeng, sparking optimism about potential relaxation of U.S. export controls.
• Market chatter indicates AMD may have won Anthropic as a client for its upcoming MI450 AI accelerator chips, according to Citi analysts.

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Shares of Advanced Micro Devices (AMD) declined 1.78% to $413.50 during Tuesday’s premarket session, despite receiving upgraded price targets from two prominent Wall Street investment firms.

Advanced Micro Devices, Inc., AMD

Evercore ISI announced the most aggressive upgrade, elevating its price objective to $579 from $358 while maintaining its Outperform recommendation. The revision follows comprehensive first-quarter supply chain research focused on artificial intelligence markets.

The firm’s analysis revealed a critical industry transition: AI computing workloads are shifting from training operations to inference applications by late 2026. This evolution is driving cloud service providers to scrutinize metrics like cost-per-token, return on investment, and total ownership costs more carefully — creating opportunities for AMD’s alternative acceleration solutions.

Evercore’s research also highlighted AMD’s impressive server CPU performance. The semiconductor company captured 220 basis points of sequential market share during the first quarter, elevating its estimated position to approximately 24%. Intel maintains dominance at 55%, while Arm Holdings commands 17%.

Analysts project the server CPU addressable market will expand dramatically from approximately 30 million units annually to between 75 million and 110 million units — representing substantial growth potential.

Citi Forecasts Server CPU Market Boom

Citi joined the upgrade cycle, raising its AMD price target from $358 to $460, while maintaining a neutral stance. Analyst Atif Malik projects the server CPU market could balloon to $132 billion by 2030 as agentic artificial intelligence increases demand for CPU-based computing capabilities.

Citi emphasized AMD’s EPYC server processor traction and its preferential manufacturing arrangement with Taiwan Semiconductor as competitive strengths.

The investment bank also noted industry speculation suggesting AMD has secured Anthropic as a customer for its forthcoming MI450 AI accelerator platform. An official announcement may emerge during AMD’s Advancing AI conference scheduled for July.

AMD currently holds a consensus Buy rating among analysts, with an average price objective of $446.76. Daiwa Capital recently elevated its target to $500 on May 13.

China Market Developments

Chief Executive Lisa Su conducted a meeting with Chinese Vice-Premier He Lifeng, generating speculation that Washington may soften certain AI chip export limitations affecting China.

The positive sentiment follows media accounts that the Trump administration authorized NVIDIA H200 AI chip transactions to selected Chinese companies. Industry observers suggest Washington appears to be moderating its comprehensive technology separation strategy and may permit upper-mid-tier chip sales while preserving restrictions on cutting-edge products.

However, Chinese enterprises are simultaneously accelerating adoption of domestic chip alternatives from Huawei and other regional manufacturers.

AMD’s next significant milestone arrives with its earnings announcement, projected for August 4, 2026. Wall Street forecasts earnings per share of $1.55, compared to $0.48 in the prior year, on revenue of $11.28 billion, up from $7.68 billion.

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