Quick Overview
- Evercore ISI upgraded AMD’s price target from $358 to $579, maintaining an Outperform rating following first-quarter AI channel research.
- The chipmaker captured an additional 220 basis points of server CPU market share quarter-over-quarter, bringing total share to approximately 24%.
- Citi elevated its AMD price target from $358 to $460, highlighting an anticipated “CPU renaissance” fueled by artificial intelligence workloads.
- AMD CEO Lisa Su’s meeting with Chinese Vice-Premier He Lifeng sparked optimism for relaxed U.S. export controls on AI chips to China.
- Industry sources suggest AMD may have won Anthropic as a client for its upcoming MI450 AI accelerator chips, according to Citi.
Shares of Advanced Micro Devices (AMD) declined 1.78% to $413.50 during Tuesday’s premarket session, despite receiving upgraded price targets from two prominent Wall Street research firms.
Advanced Micro Devices, Inc., AMD
Evercore ISI announced the most aggressive upgrade, pushing its price objective to $579 from the previous $358 while reaffirming its Outperform rating. The revision followed comprehensive first-quarter AI channel research conducted by the firm.
According to Evercore’s findings, the artificial intelligence landscape is undergoing a critical transition from training-focused workloads toward inference applications, expected to materialize by late 2026. This evolution is driving hyperscale data center operators to prioritize metrics including cost-per-token efficiency, return on investment, and total ownership expenses — factors that favor alternative accelerator solutions like those offered by AMD.
Evercore’s analysis also highlighted AMD’s impressive server CPU performance. The semiconductor manufacturer added 220 basis points to its server CPU unit market share in the first quarter, elevating its estimated position to roughly 24%. Intel currently commands 55% of the market, while Arm Holdings accounts for 17%.
The investment firm projects the server CPU addressable market will expand dramatically from approximately 30 million units annually to a range of 75 million to 110 million units — representing substantial growth potential if projections materialize.
Citi Forecasts “CPU Renaissance”
Citi joined the upgrade trend, increasing its AMD price projection from $358 to $460, though maintaining a neutral stance. Analyst Atif Malik projected the server CPU market could swell to $132 billion by 2030, driven by agentic AI applications requiring enhanced CPU processing capabilities.
Citi highlighted AMD’s EPYC server processor strength and its preferred manufacturing relationship with Taiwan Semiconductor as strategic competitive edges.
The research firm also noted that industry intelligence points to AMD potentially securing Anthropic as a client for its next-generation MI450 AI accelerator platform. An official announcement may surface during AMD’s Advancing AI conference scheduled for July.
Wall Street consensus currently rates AMD as a Buy, with an average price target of $446.76. Daiwa Capital recently set its target at $500 on May 13.
Strategic China Engagement
CEO Lisa Su’s recent meeting with Chinese Vice-Premier He Lifeng has intensified speculation that the United States might relax certain AI chip export limitations affecting China.
During AMD’s AI developer conference in Shanghai, Su described China as “the world’s most dynamic AI ecosystem” and reaffirmed AMD’s dedication to the market. The Chinese market represents approximately 25% of AMD’s total annual revenue.
The positive sentiment follows indications that the Trump administration authorized NVIDIA to sell H200 AI chips to selected Chinese companies. Market observers suggest Washington may be stepping back from comprehensive technology decoupling, potentially permitting upper-mid-tier chip sales while maintaining restrictions on cutting-edge products.
Meanwhile, Chinese enterprises are increasingly embracing domestic chip alternatives from Huawei and other indigenous manufacturers.
AMD’s next significant market event will be its earnings announcement, projected for August 4, 2026. Wall Street anticipates earnings per share of $1.55, up from $0.48 in the prior year, with revenue expected at $11.28 billion compared to $7.68 billion previously.
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