Benchmark Reiterates Buy on AMD, $325 Price Target

Benchmark analyst Cody Acree reiterated a Buy rating and $325.00 price target on AMD (NASDAQ: AMD).

“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 number of marquee partners 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 agreements with OpenAI, Oracle, Meta, and across several Sovereign AI projects, plus a number of engagements with leading Hyperscalers who are each working on major deployments beginning with AMD’s current MI350 generation and expanding aggressively through this year and beyond, with its Instinct MI450 and Helios rack-scale server.

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

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