June 23 – Advanced Micro Devices (AMD, Financial) shares edged higher after Melius Research lifted its rating to "Buy" and raised the price target to $175 from $110, according to a Monday note to clients.
Shares in premarket trading inched up about 1% following the news. Analyst Benjamin Reitzes highlighted growing inferencing demand, where AI models apply learned patterns to new data, as a key driver for larger GPU deployments in 2026–2028.
Reitzes noted that despite a roughly 25% year-to-date gain, confidence in AMD's AI prospects appears to be strengthening. He suggested that hyperscalers and sovereign projects may increasingly adopt AMD's platform if inferencing workloads surge as expected.
The upgrade arrives amid intensifying competition in AI hardware. AMD must contend with rivals on performance, efficiency, and supply. Melius believes execution risks exist but sees potential for a “historic run” if AMD secures design wins and sustains momentum.
Investors should weigh the bullish outlook against valuation levels and sector dynamics before making decisions.
This upgrade underscores AI's attraction but reminds that high expectations may face headwinds as the market evolves.
Is AMD Stock a Buy?
Based on the one year price targets offered by 40 analysts, the average target price for Advanced Micro Devices Inc is $131.51 with a high estimate of $200.00 and a low estimate of $95.00. The average target implies a upside of +2.55% from the current price of $128.24.
Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc in one year is $165.43, suggesting a upside of +29.00% from the current price of $128.24.
