Advanced Micro Devices: this analyst just hiked his price target

Roth Capital Partners analyst Suji Desilva says Advanced Micro Devices (Advanced Micro Devices Stock Quote, Chart, News, Analysts, Financials NASDAQ:AMD) is well positioned for a strong processor ramp as agentic AI drives demand for inference computing.

In a July 24 update, Desilva maintained his “Buy” rating on AMD and raised his target to US$650.00 from $500.00.

“We are encouraged by the technical advantages of AMD’s Helios AI rack-scale solution, which formally launched at the Advancing AI show,” Desilva said.

At AMD’s Advancing AI 2026 event in San Francisco, CEO Lisa Su said rapid growth in AI token consumption is driving a larger opportunity for AI accelerators. AMD now estimates the AI GPU accelerator market will reach US$1.4-trillion by 2030, up from its prior estimate of US$500-billion by 2028.

Desilva said AMD’s Helios AI rack-scale solution should see strong customer demand and backlog as hyperscalers and frontier AI companies expand infrastructure. He said AI inference now represents 60% of overall AI infrastructure spending, surpassing training, which had historically accounted for the bulk of spending.

The shift is also expected to drive stronger demand for CPUs, with AMD estimating the addressable market will grow nearly tenfold over the next five years to US$220-billion.

“We expect AMD to gain share in AI GPU accelerators, particularly with Helios launching, and benefit from its strong data center CPU market position,” Desilva said.

AMD also announced a new customer agreement with Anthropic and an expanded partnership with Microsoft Azure. Anthropic is expected to purchase up to two gigawatts of AMD’s Helios rack-scale solution, with the first gigawatt planned for deployment beginning in the first half of 2027. AMD also plans to invest as much as US$5-billion in Anthropic over time.

Desilva said AMD’s platform offers advantages in modularity, open-source flexibility and support for customer-specific AI infrastructure needs. He said AMD’s Venice CPU family should support a range of agentic AI workloads, while the MI455X AI GPU delivers at least five times the token throughput of prior generations.

“We believe these advantages have helped AMD secure Helios customer wins at Meta, OpenAI, Oracle and now Anthropic,” Desilva said. “Additionally, we are encouraged that eight of the top ten frontier AI models are using AMD solutions.”

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