In an investment report issued in recent days, the Investment Research Institute, CFRA, increased the AMD equity rating to a strong buy-in and raised the target share price from $125 to $165. This is AMD’s latest second report. Previously, Melius Research analyst Ben Reitses had moved his rating from holding to buying, with the target price jumping from $110 to $175.
Like CFRA, Melius shares the view that AMD is likely to lead to significant growth in AI GPU demand, especially in the case of sovereign AI countries and strong calculator demand from mega-service providers. In its report, CFRA further noted that acquisitions and new products will help AMD to close the gap with industry leaders, Inc. by 2026.
In his report, the CFRA analyst Angelo Zino described several factors that had led the agency to increase the AMD target significantly and to give a rare “strong buy-in” rating. In his view, AMD was expected to close the competition gap with Inverda by 2026. AI GPU in Weida is a market leader in performance and accounts for the bulk of global sales of AI chips. AMD has been seeking to take market shares from its larger competitors, and both CFRA and Melius believe that the company is expected to succeed in the AI GPU market next year.
The lack of an AI catalyst has been a major driver of AMD stock prices for most of 2025. The AMD stock price increased by 14 per cent cumulatively from the beginning of the year to the present, but before the week, it had fallen by 3.7 per cent since the beginning of the year, owing to market expectations of weak PC market performance and the low AMD market share in AI GPU. This upturn led to a significant 6.8 per cent increase in the AMD stock price.
CFRA ‘ s assumption that AMD will narrow the gap with Weeda is based mainly on the M400x AI chip that AMD is about to launch and the company ‘ s acquisition of ZT Systems earlier this year. By acquiring ZT Systems, AMD aims to control a larger share of the AI supply chain. According to CFRA, the transaction would enable AMD to access the server rack market and expand its client base to include Oracle and OpenAI, which are heavyweight customers.
Oracle is one of the key players in the AI infrastructure area and provides the AIS software company with the hardware support it needs to run its software model. OpenAI has also established its own hardware cluster. Together, they represent a significant part of the demand in the AI market.
Consistent with Melius, CFRA also noted that the demand for sovereign AI and the recovery of the GPU server market could contribute to AMD growth. It added that AMD might return to the Chinese market, which would add a source of income to it.
