Key Takeaways
- RBC Capital maintained its Sector Perform rating with a $540 price target following AMD’s Advancing AI showcase
- A groundbreaking collaboration with Anthropic includes deployment of up to 2 gigawatts of MI450-series GPUs alongside a planned $5 billion equity stake
- Analysts project the Anthropic partnership could deliver $10–$20 billion in additional revenue, with the first 1GW phase primarily ramping in 2027
- Wall Street firms upgraded targets post-event, with Baird reaching $1,250, Melius at $660, UBS at $730, Jefferies at $640, and Cantor Fitzgerald at $700
- The company’s latest quarterly performance delivered EPS of $1.37 and $10.25 billion in revenue, exceeding expectations with 37.8% year-over-year growth
Shares of Advanced Micro Devices opened Friday’s trading session at $539.69, pushing the company’s valuation to approximately $880 billion. The semiconductor giant currently trades at a price-to-earnings multiple near 177, with its 52-week trading range spanning $149.22 to $584.73.
Advanced Micro Devices, Inc., AMD
The headline development this week centers on the strategic Anthropic collaboration. AMD’s agreement involves deploying up to 2 gigawatts of Instinct MI450-series GPU infrastructure for Anthropic, complemented by an equity commitment reaching $5 billion. This represents a transformative partnership for the chipmaker.
Company executives indicated the initial 1-gigawatt phase of this infrastructure rollout will predominantly occur throughout 2027. Conservative estimates suggest the opening phase alone could generate between $10 and $20 billion in new revenue streams.
This strategic announcement coincided with AMD’s Advancing AI 2026 showcase, where the semiconductor manufacturer introduced its Helios rack-scale AI infrastructure and increased projections for its GPU and CPU addressable market opportunities.
Additionally, AMD revealed a collaborative effort with Cerebras focused on developing an ultra-low-latency AI inference platform. The integrated solution is scheduled for availability through Cerebras Cloud during the latter half of 2026.
Wall Street Response
The Anthropic partnership ignited significant activity among Wall Street analysts. Baird demonstrated the most aggressive stance, elevating its price objective to $1,250 while forecasting AMD will capture $147 billion in AI GPU revenues by 2030.
Melius Research increased its target to $660, emphasizing the Anthropic agreement could contribute approximately $17 billion in revenues by 2027. UBS upgraded to $730, highlighting AMD’s server CPU trajectory and anticipating EPS nearing $30 by 2028.
Jefferies boosted its target to $640, emphasizing the company’s server market dominance and broadening AI customer portfolio. Cantor Fitzgerald maintained its Overweight stance with a $700 target, suggesting approximately 30% appreciation potential from previous closing levels.
RBC Capital retained its Sector Perform rating at $540. While incorporating the Anthropic deal into revised models, the firm indicated it requires confirmation of Helios production ramps before adopting a more constructive outlook. The analysts identified component availability, rack-scale implementation challenges, and competitive pressures as primary concerns.
Financial Performance and Insider Transactions
AMD’s most recent quarterly disclosure, published May 5, revealed earnings per share of $1.37, surpassing the $1.29 analyst consensus. Revenues totaled $10.25 billion, exceeding the $9.90 billion forecast while representing 37.8% year-over-year expansion. Wall Street currently projects full-year EPS of $6.25.
Regarding insider transactions, CEO Lisa Su divested 125,000 shares at a mean price of $460.69 on June 10 through a pre-established 10b5-1 trading arrangement. EVP Paul Darren Grasby disposed of 24,376 shares during May at an average of $444.39.
Company insiders have collectively sold 310,310 shares valued at roughly $141 million during the previous three-month period. Institutional ownership comprises 71.34% of outstanding shares.
The stock’s 50-day moving average currently registers at $510.65, while the 200-day moving average stands at $339.41.
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