Advanced Micro Devices (AMD) Raymond James Boosts Target to $641, Forecasting 35% Upside

Advanced Micro Devices (AMD) (AMD:CA)

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Raymond James just raised its 12 month target on Advanced Micro Devices, increasing their bullish narrative. Analyst Simon Leopold upgraded AMD’s stock to a “Strong Buy” from a “Outperform” rating and upgraded his price target to $641 from $565. The new target implies approximately 35% upside,from current trading levels, with tha average analyst target of roughly $613 per share.

The key change in Leopold’s thesis is his expanding view of the AI infrastructure opportunity beyond GPUs. Raymond James expects the global server-CPU market to grow at an estimated 44% compound annual growth rate through 2030, reaching approximately $201 billion. The firm sees three major drivers: traditional data-center expansion, CPUs that host and coordinate AI accelerators, and a new wave of agentic AI workloads requiring substantial processing around each AI model interaction.

This is important for AMD because AI systems increasingly require CPUs to handle tasks surrounding GPU acceleration, including data retrieval, databases, application execution, security, orchestration and tool management. In other words, the growth of AI does not necessarily eliminate the importance of CPUs; increasingly complex AI infrastructure may actually create additional demand for high-performance server CPUs.

Leopold argues that AMD is particularly well positioned to capture this opportunity, citing the company’s combination of direct earnings leverage, data-center exposure and continuing market-share gains. AMD’s competitive position against Intel is therefore becoming a central part of the bullish thesis, with some market analysts suggesting AMD could challenge or surpass Intel’s traditional server-CPU dominance as early as 2027.

The upgrade also comes at an interesting point technically and fundamentally. AMD has already gained substantially this year, meaning the $641 target requires continued earnings growth rather than simply multiple expansion. However, the size of the projected server-CPU market gives Raymond James a much larger addressable-market assumption to support its valuation.

Raymond James is effectively arguing that AMD is becoming more than an alternative GPU supplier to Nvidia. The company could emerge as a major AI infrastructure platform, benefiting simultaneously from AI accelerators, server CPUs and the growing computational requirements of agentic AI. The upgrade to a “Strong Buy” and $641 price target represents a significant increase in conviction, although achieving that target will depend on AMD continuing to gain data-center share and converting the rapidly expanding AI opportunity into sustained earnings growth.