Key Points
Shares of Advanced Micro Devices (NASDAQ: AMD) rose significantly on Tuesday after analyst Simon Leopold of Raymond James upgraded the stock to a “strong buy” and increased the price target from $565 to $641. This represents a potential upside of over 33% for investors. Leopold forecasts that sales of server central processing units (CPUs) will grow at an annualized rate of 44%, reaching $201 billion by 2030, driven primarily by demand from artificial intelligence applications.
AMD’s data center revenue surged by 107% year over year to $6.7 billion in Q2, primarily due to strong sales of its EPYC processors and Instinct GPUs. Leopold anticipates that AMD will also gain market share from competitors like Intel and Nvidia, citing the company’s robust positioning in the AI infrastructure space and the introduction of its Helios rackscale servers.
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