Stifel Reiterates Buy on AMD, $635 PT
Stifel analyst Ruben Roy reiterated a Buy rating and $635 price target on AMD (NASDAQ: AMD).
“We attended AMD’s 2026 Advancing AI event where management lifted its 2030 TAM framework (data center accelerators to ~$1.4tn at a >45% CAGR, server CPU to ~$220bn at >50%), formally launched its first in house rack scale system (Helios/ MI455X) into full production, and committed to an annual rack-scale (CPU+GPU+networking) cadence through Helios 500 (2027) and Helios 600 (2028).
With disclosed committed compute at 14GW (~$245bn of cumulative revenue on our ~$17.5bn/GW framework), the order book question is largely settled, and near-term investor focus likely shifts to first generation rack gross margin and ramp linearity.
A few new vectors emerged i) a Cerebras disaggregated inference partnership, ii) the Kria robotics platform, iii) ROCm.ai and frontier lab co-development, and iv) sovereign/HPC (MI430X) Instinct variant that broadens demand beyond hyperscale – lengthening the runway without yet touching estimates.
We continue to view the >$20 adj-EPS longer-term target as a conservative floor.”
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