D.A. Davidson Raises AMD Price Target to $375 on AI CPU Demand
Analyst Gil Luria at D.A. Davidson upgraded AMD to Buy from Neutral and raised its price target to $375 from $220, citing stronger-than-expected AI-driven CPU demand. The firm lifted its 2026 revenue estimate by $2 billion and gross profit by $1.5 billion and sees room for price increases.
1. Analyst Upgrade and Price Target Increase
D.A. Davidson analyst Gil Luria upgraded AMD’s rating to Buy from Neutral while boosting the price target to $375 from $220. The move reflects improved visibility into agentic AI workloads that shift compute demand toward AMD’s CPUs.
2. 2026 Revenue and Profit Estimate Revisions
The firm raised its 2026 revenue projection by $2 billion and its gross profit forecast by $1.5 billion, reflecting robust data center demand. These upward revisions suggest stronger-than-anticipated uptake of AMD’s server and enterprise products.
3. Pricing Leverage and Market Drivers
With demand outpacing supply, AMD may have pricing power across its CPU and GPU portfolios. Continued AI infrastructure investments by major hyperscalers and OpenAI fundraising are expected to underpin sustained growth.