Bernstein Raises AMD Price Target to $600 on $223 B Server CPU TAM Forecast
AMD•Bernstein boosts server CPU total addressable market estimate to $223 billion from $137 billion, driven by a shift to agentic AI workloads that increase CPU demand. The firm raises AMD’s price target to $600 and maintains an Outperform rating as CPU-to-GPU ratios in AI data centers near 1:1.
1. TAM Revision Driven by Agentic AI
Bernstein raised its server CPU total addressable market estimate to $223 billion, up from a prior $137 billion, reflecting a transition from generative AI’s chatbot phase to agentic AI that involves autonomous task orchestration and execution, boosting CPU workloads compared with GPUs.
2. AMD Price Target Lifted to $600
The firm increased AMD’s price target to $600 and retained its Outperform rating, based on projections of a sustained 1:1 or higher CPU-to-GPU ratio in AI data centers. This ratio shift underpins expectations for robust CPU-driven revenue growth through 2030.
