AMD's (AMD, Financial) stock saw a significant boost, climbing over 3% after Melius Research upgraded its rating to "buy" and raised the price target from $110 to $175. Analyst Benjamin Reitzes highlighted the growing demand for AI model inference as a key driver for GPU deployment between 2026 and 2028.
Despite a 25% increase in AMD's stock this year, confidence in its AI potential is growing. Reitzes noted that if inference workloads surge as expected, major cloud providers and national projects may increasingly adopt AMD's platform.
This upgrade comes amid intensifying competition in AI hardware. AMD faces challenges in performance, efficiency, and supply but could seize a "historic opportunity" if it secures design orders and maintains momentum. However, investors must weigh the optimistic outlook against valuation levels and industry dynamics.
