Bernstein Reiterates Market Perform on AMD, $95 Price Target

Bernstein SocGen Group analyst Stacy Rasgon reiterated a Market Perform rating and $95 price target on AMD (NASDAQ: AMD).

“Similar to last year, not bad but no huge surprises…Announcements included more details on forthcoming GPUs (MI350 in production now and available in Q3, MI400 next year, MI500 in 2027) as well as some color on upcoming rack-scale offerings, new EPYC server CPUs (Venice next year, Verano in 2027), and more details on AI software and ecosystem efforts (with the launch of ROCm 7).

However, contrary to some hopes, there were no new major GPU partners announced, with most of the testimonials (Meta, Oracle, Microsoft, Humain, XAI etc) already existing and known.No updates to near-term outlook; management incrementally more bullish on the long term.

AMD has stopped providing concrete guidance on AI revenues this year, and did not update any guidance at the event.

However, they did suggest that they now see the 2028 AI accelerator TAM at “more than $500B” (vs $500B prior), though as usual we are not really inclined to read much into it (we believe the opportunity is large, which is enough at this point).

They did, however, suggest a material inflection in inference, likely growing at a >80% CAGR through the time period.The stock sold off during the event, down ~2 points on the day in a modestly up market (SOX up ~0.3%, NVDA up 1.5%) in what has been the typical sell-the-news response seen after most of these, perhaps understandable given the lack of huge surprises (especially lack of new major customer announcements).

That being said, the company is making some progress (on paper at least) and working hard to build the capabilities needed to go after the market, and while we will see how much success they will have (ecosystem, software etc still likely have a long way to go), the effort is at least somewhat encouraging.

Nevertheless, right now we would still rather own NVDA as the stocks are similarly valued (~29-30x) and we don’t have to argue with ourselves as to whether or not there is actual, meaningful demand for their products (for NVDA we know there is).”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.