Stifel reiterates buy rating on AMD stock, citing AI growth potential

Published 13/06/2025, 13:20
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Stifel analyst Ruben Roy maintained a buy rating and $132.00 price target on AMD (NASDAQ:AMD), a prominent semiconductor player with a $192.14B market cap, following the company’s launch of its Instinct MI350 GPUs and platforms. According to InvestingPro data, AMD’s stock currently trades at $118.50, with analysts’ targets ranging from $95 to $200.

AMD previewed its next-generation MI400 GPUs and Helios AI rack solution during the event, while confirming plans to match Nvidia (NASDAQ:NVDA)’s annual GPU architecture release cycle through the MI500 Series in 2027.

The company emphasized its commitment to an open AI ecosystem and focus on inference workloads, which management expects will drive the AI accelerator total addressable market (TAM) faster than training workloads over the next several years.

AMD has increased its forecast for the overall accelerator market, now projecting a greater than $500 billion TAM by 2028, up from its previous estimate of $500 billion.

Stifel views AMD’s product roadmap execution positively and expects continued adoption in tier-1 AI infrastructure deployments.

In other recent news, Advanced Micro Devices (AMD) has been actively expanding its AI technology offerings. The company introduced its new Instinct MI350 Series accelerators, which reportedly deliver significant improvements in AI compute and inferencing capabilities. AMD also previewed its next-generation AI platform, Helios, expected to launch in 2026, which aims to enhance performance for AI models. In collaboration with Infobell, AMD is developing enterprise-ready AI solutions, leveraging its Instinct GPUs and EPYC CPUs to improve performance and efficiency for enterprise clients.

Analysts have responded to these developments with mixed updates. Cantor Fitzgerald maintained an Overweight rating and a $140 price target, projecting a significant revenue increase for AMD’s Data Center GPU segment in the coming years. Stifel reiterated a buy rating with a $132 price target, noting AMD’s commitment to an open AI ecosystem and a promising product roadmap. Evercore ISI raised its price target to $144, highlighting AMD’s progress in its AI strategy and increased visibility in the data center GPU market.

Additionally, AMD announced its collaboration with major industry players like Meta (NASDAQ:META), OpenAI, and Microsoft (NASDAQ:MSFT), which are utilizing its Instinct accelerators for production workloads. The company also released ROCm 7, an updated version of its AI software stack, and announced the availability of the AMD Developer Cloud. These efforts underscore AMD’s focus on enhancing its AI infrastructure and expanding its market presence in the AI sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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