Rosenblatt Raises AMD Price Target to $490

Rosenblatt analyst Kevin Cassidy raised the price target on AMD (NASDAQ: AMD) to $490.00 (from $300.00) while maintaining a Buy rating.

“AMD delivered a beat-n-raise earnings report. The upside was driven by demand for server CPUs as the use of Agentic AI proliferates and drives productivity.

Server CPU revenue growth was 50%+ during the quarter. Outlook for June is 70%+ Y/Y growth.

According to management most of the growth is driven by unit shipments with double-digit increase in ASP/unit. ASP/core continues to decline but demand is mix is increasing for CPUs with more cores.

We are lifting our estimates and our 12-month price target to $490, based on a P/E multiple of 35x our FY27E Non-GAAP EPS.

We see 35x as justified to AMD’s top line growing 40%+ and bottom line growing 80%+.”

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