Benchmark Raises AMD Price Target to $325

Benchmark analyst Cody Acree raised the price target on AMD (NASDAQ: AMD) to $325 (from $270) while maintaining a Buy rating.

“While AMD’s shares are softer after hours by as much as $12 or about 5%, we don’t believe the market’s initial reaction is indicative of the company’s strong record results, its attractive outlook, or the company’s rapidly growing leverage to the aggressively expanding AI Data Center market across both its traditional server CPU portfolio and its increasingly competitive AI GPUs, which is exemplified by a significant number of recent marquee partner announcements who are committing to use AMD GPUs and its planned 2026 rack scale server platform.

We believe the company’s roadmap is gaining material traction with a growing customer base that is insatiably demanding higher volumes of high-performance compute resources for both their training and rapidly expanding inference workloads, who are eager for a viable alternative to Nvidia’s dominant, but proprietary and closed architecture, particularly given the incumbent’s ongoing challenges to fully satisfy the market’s ever-increasing demand.

The proof points of AMD’s improved competitive positioning can be seen in its recent agreements with OpenAI, Oracle, Meta, the US Department of Energy, Sovereign AI projects, and a number of engagements with leading Hyperscalers who are each planning major deployments beginning with AMD’s current MI350 generation and expanding aggressively through next year and beyond.

In aggregate, the company sees a clear trajectory towards achieving its goal of earning tens of billions of annual AI revenue in 2027, with the OpenAI partnership alone said to represent well over $100 billion of revenue potential over the next few years.”

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