Advanced Micro Devices (AMD) Stock: Analyst Sees 63% Upside on AI Compute Expansion

TLDR

• Aletheia Capital reiterates a Buy rating on AMD with a $330 price target
• AMD’s server CPU revenue is projected to grow at a 45% CAGR from 2025 to 2028
• Data center revenue is forecast to grow from $17B in 2025 to $77B by 2028
• AMD has expanded from a GPU supplier to a full AI compute provider
• Lisa Su has been appointed to Trump’s science and technology advisory council

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Advanced Micro Devices ($AMD) is getting fresh praise from Aletheia Capital, which reiterated its Buy rating and $330 price target on the stock. At a current price of $201.99, that implies significant upside on the firm’s numbers.

Advanced Micro Devices, Inc., AMD

Aletheia’s thesis centers on AMD’s growing role in agentic AI. The firm argues that CPUs — not just GPUs — are the right chip for agent-based computing workloads, and AMD is well-placed to capture that demand.

The firm projects AMD’s server CPU revenue will grow at a 45% compound annual growth rate between 2025 and 2028. That’s a steep trajectory, and it sits at the core of why Aletheia is so bullish.

On the data center side, Aletheia sees revenue growing from $17 billion in 2025 to $58 billion in 2027, then $77 billion in 2028. That would represent a roughly 4.5x expansion in just three years.

The firm used a sum-of-the-parts valuation to arrive at its $330 target. InvestingPro’s Fair Value model puts AMD at $225.24, still above the current price.

AMD posted 34% revenue growth over the last twelve months. That growth rate supports the narrative that the company is taking a bigger slice of the AI compute market.

Aletheia now sees AMD as more than a second-source GPU supplier. The firm describes AMD as a “comprehensive AI compute provider” — a framing that reflects how much the story has evolved.

That said, the firm flagged risks including end market demand, execution, and geopolitics. Those aren’t small caveats given the current macro environment.

Analyst Support Builds

Wolfe Research also has an Outperform rating on AMD, with a $300 price target. The firm highlighted AMD’s confidence in its AI accelerator roadmap and continued momentum in servers.

Seaport’s Jonathan Golub pointed out that semiconductor valuations, including AMD’s, have compressed since July. He sees that compression as an upside opportunity.

Recent Developments

AMD and Celestica recently announced the Helios rack-scale AI platform, aimed at data center infrastructure. The partnership leverages Celestica’s design and manufacturing capabilities.

AMD also signed a multi-year licensing deal with Adeia Inc. The agreement gives AMD access to Adeia’s semiconductor IP portfolio and resolves all outstanding litigation between the two companies.

Lisa Su has been appointed to President Trump’s Council of Advisors on Science and Technology. The move puts her alongside other key figures shaping U.S. tech and science policy.

AMD expressed caution about its client and gaming segments due to rising memory prices. Those two segments have been softer compared to the data center business.

InvestingPro lists AMD as a “prominent player in the Semiconductors & Semiconductor Equipment industry.” The stock is down 0.87% on the day at time of writing.

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