Bank Raises AMD Price Target 47% to $670, Cites Server CPU Demand
AMD•An investment bank raised AMD’s price target to $670 from $455 while maintaining a Buy rating, citing improving server CPU demand trends. The bank lifted CPU server revenue forecasts to $16 billion in 2026, $23 billion in 2027, $29 billion in 2028 and $50 billion by 2030 while warning of valuation and execution risks.
1. Price Target Increase
A veteran investment bank increased AMD’s price target from $455 to $670 and reaffirmed a Buy rating, reflecting confidence in the company’s server CPU business expansion.
2. Revenue Projections Revision
Server CPU revenue projections were raised to $16 billion for 2026, $23 billion for 2027 and $29 billion for 2028, with 2030 forecasts increased to $50 billion based on continued data center adoption.
3. Stock Performance and Valuation
AMD shares have climbed roughly 275% over the past year to around $520, driving valuation above estimated fair value and prompting debate over potential multiple compression.
4. Risks and Outlook
Analysts caution that execution risks and intensifying competition in key server markets could slow growth, making future performance sensitive to both market demand and AMD’s ability to deliver on elevated forecasts.
