These 2 Analysts Just Upped Their AMD Stock Price Targets. Here's Why.

Wall Street has not been shy about backing Advanced Micro Devices (AMD) lately, and two prominent analysts have just added even more fuel to the fire. Rosenblatt analyst Kevin Cassidy raised his price target on AMD stock ahead of the company's Advancing Artificial Intelligence (AI) event on Wednesday, July 22 and Thursday, July 23, calling it his firm's top semiconductor pick.

Cassidy believes Advanced Micro's momentum has plenty of room to run. He expects revenue from Extended Performance Yield Computing (EPYC) server CPUs to surge more than 70% year-over-year (YOY) while generating margins comfortably above the company average.

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He also sees Advanced Micro's upcoming Venice chip grabbing the spotlight at the premium end of the market because Intel Corporation's (INTC) competing Diamond Rapids processor has run into delays.

Additionally, UBS Group AG (UBS) analyst Timothy Arcuri came away feeling optimistic. He expects the company's AI Day to reveal stronger CPU and GPU roadmaps, fresh AI partnerships, and a growing list of data center customers. His supply chain checks also paint an encouraging picture, suggesting that the current momentum could stay intact through 2027.

The timing could hardly be better. Microsoft Corporation (MSFT) stepped into the picture just as investor enthusiasm for AMD stock was already gathering pace. Its shares climbed 1.6% on Monday, July 20, after the company announced that Microsoft will deploy its upcoming Helios rack-scale AI platform across Azure cloud services.

And, Helios is scheduled to reach Meta Platforms (META) and Oracle Corporation (ORCL) later this year, giving Advanced Micro yet another vote of confidence from some of the biggest names in cloud computing.

All of this lands just ahead of AMD's two-day Advancing AI event, which begins on Wednesday. With so many catalysts lining up at once, the obvious question is whether AMD stock can continue to strengthen.

Advanced Micro Devices has come a long way since opening its doors in 1969. Headquartered in Santa Clara, California, the company has transformed itself into one of the world's leading semiconductor designers by building high-performance Ryzen and EPYC CPUs, Radeon graphics processors, and Instinct AI accelerators.

The relentless focus on chip innovation has placed Advanced Micro right at the center of today's AI and cloud computing boom. The company now commands a market cap of $821.1 billion while continuing to challenge its rivals across several of the industry's fastest-growing markets through both technological advances and strategic partnerships.

Investors have not missed the story. Advanced Micro's shares have soared 244.7% over the past 52 weeks while the stock has gained 152.7% since the start of the year alone. Even over the last three months, the shares rallied another 90.2%, proving that momentum has remained firmly on AMD's side.

Of course, every silver lining has a cloud. AMD's valuation has become much richer after such a powerful run. The stock now trades at 67.75 times forward adjusted price-to-earnings and 16.54 times sales. Both valuation multiples sit comfortably above the industry average as well as the company's own five-year historical averages, signaling a premium.

The company reported its Q1 FY2026 results on May 5 and comfortably beat Wall Street's expectations on both revenue and earnings. Revenue climbed 37.8% YOY to $10.3 billion, topping analysts' estimate of $9.9 billion. Adjusted EPS also grew 42.7% from the year-ago value to $1.37, and ahead of the Street's forecast of $1.29.

The data center business once again did the heavy lifting, although demand remained healthy across every operating segment. A sharp increase in AI infrastructure spending pushed data center revenue up 57% YOY to $5.8 billion. Strong sales of EPYC, CPUs and Instinct GPUs powered much of that growth.

Also, the company turned in another solid quarter on the profitability front. Non-GAAP operating income rose 42.8% from the year-ago period to $2.5 billion, while non-GAAP net income increased 44.6% YOY to $2.3 billion.