TD Cowen Raises AMD Price Target to $500

TD Cowen analyst Joshua Buchalter raised the price target on AMD (NASDAQ: AMD) to $500.00 (from $290.00) while maintaining a Buy rating.

“After last quarter’s elevated expectations, we were cautious on upside given supply constraints (here); however, these concerns were quickly an afterthought after AMD meaningfully raised its long-term DC-CPU forecast and signaled growing confidence in its DC-GPU engagements.

While we saw potential for upside to the 2025 analyst day targets, we figured July’s Advancing AI event was the more likely time for fireworks than today.

We believe shares are trading up meaningfully due to the surprise timing of the TAM increase and the sheer magnitude of the implied upside to the long term model.

Our long-term model moves up sharply, with EPS approaching $30 in 2030E (Fig. 2)… on numbers well-below the implied target levels.

Near term, server CPU saw >50% Y/Y growth across enterprise and cloud, driven primarily by units with incremental ASP uplift as Turin crossed >50% of mix.

Impressively, 2Q is guided >70% Y/Y with momentum extending into 2H26/2027, supporting AMD’s continued share gains.

This near-term strength is complemented by a material raise in company long-term expectations.

AMD 2x’d its CPU TAM from just 6 months ago (here) to ~$120B as agentic AI drives CPU demand, while maintaining ~50% market share expectations.

The ~$60B implied 2030 server CPU revenue is up ~6x from our 2025 estimates.”

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