- TD Cowen reiterated a Buy rating and $675 price target on AMD, citing agentic AI and production inference workloads that favor CPUs for workflow coordination, tool calls, and sequential decisions.
- AMD shares rose 2% to $539.93 in the afternoon session as semiconductor stocks rebounded from a two-week decline.
- AMD shares fell 4.1% three days before this move after Federal Reserve Chairman Kevin Warsh stressed price stability and avoided signals on future rate cuts.
- AMD trades 16.9% below its 52-week high of $649.42 and is up 142% year to date.
- Earlier this year AMD nearly doubled its CPU total addressable market to $220 billion and guided 2027 server CPU growth to 70% year over year.
- Citigroup raised its AMD price target to $800 and Stifel raised its target to $700, both citing AI demand.
Quotes
“CPUs are seeing a resurgence driven by agentic AI workloads that require coordination of multi-step workflows, tool calls, API management, and sequential decision-making, characteristics well suited for CPUs, TD Cowen said.”