Analysts were positive and kept their bullish views on Advanced Micro Devices (AMD) after the company’s Analyst Day on Tuesday, where the chipmaker provided financial targets and reiterated the theme that AI spending is not likely to slow down anytime soon.
Shares of AMD jumped about 6% premarket on Wednesday.
Wedbush maintained its Outperform rating and $290 price target on the stock.
“A revenue CAGR of 35% over the next 3 – 5 years, driven by strong AI growth, implies upside vs. our model (and consensus) heading into AMD’s Analyst event, particularly if growth is stronger at the beginning of this period (as management suggested),” said the analysts.
The analysts noted that AMD’s forecast for its AI accelerator business to grow by 60% is by far the single largest driver of higher revenue expectations versus Wedbush’s model (and consensus).
The analysts also believe current announced project wins — OpenAI (OPENAI), Meta Platforms (META) and Oracle (ORCL) — would support upside to even AMD’s new forecast.
Wedbush added that the key question in its view remains AMD’s execution on its Helios/MI400 platform.
The analysts said that if AMD is correct and the compute total addressable market, or TAM, is set to grow at 18% over the next few years, Wedbush’s model should prove overly conservative around server compute expectations given likely AMD share gains, though the impact is modest in relation to the potential variability tied to AI.
“Rather, if such strong growth trends play out, we would see the implications as being more important (and positive) for other portions of the server supply chain and particularly suppliers of commodity parts (memory, HDDs, etc.). These commodities are already in short supply given unexpectedly strong compute demand, and this pace of growth would in our view only further stress the ability of suppliers to meet industry requirements, yielding an even more prolonged period of favorable fundamentals,” the analysts added.
BofA kept its Buy rating and $300 price target on AMD’s stock.
“AMD provided updates to its Al TAМ, long-term financial outlook, and market share expectations in each of the key end markets, but vastly outpaced our expectations in most metrics. Importantly, AMD now sees total Al silicon TAM of >$1Tn by CY30- across CPUs, GPUs, NICS, and scale-up networking (though does not include scale out/switches) – which at a significant doubledigit market share aspiration translates into $100bn+ of annual data center revenuе from its current -$16bn,” said analyst led by Vivek Arya.
The analysts added that while no new major Al customers were named, AMD clarified it has visibility into new multi-gigawatt customer adoption beginning with the MI450 Series generation (second half of 2026).
The analysts also flagged the upcoming AWS re:Invent event from Dec. 1 to Dec. 5 as a potential catalyst for new announcements.
Meanwhile, KeyBanc Capital has a Sector Weight rating on AMD’s stock.