Semiconductor giant Advanced Micro Devices (AMD) is receiving positive reviews ahead of its much-anticipated “Advancing AI” event on June 12. On Monday, Cantor Fitzgerald analyst C.J. Muse raised his price target for AMD stock to $140 from $120 and reiterated a Buy rating. The 5-star analyst believes that AMD’s Advancing AI events continue to be the company’s most vital showcase of the year for the data center offerings.
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Cantor Fitzgerald Analyst Upbeat on AMD’s Advancing AI Event
Muse emphasized that AMD’s Advancing AI events help “frame the discussion of the importance and sizing of AI into the coming years.” He sees 2025 as a potential transition year for AMD, with investors shifting their focus on the company’s ability to win share in next year’s MI400 product cycle. In fact, Muse sees the possibility of AMD stock outperforming the broader semiconductor market if the company provides investors with commentary on new design wins into 2026 and a clearer vision for a total solution framework, along with strong software and hardware updates.
Specifically, Muse expects AMD to focus on its upcoming Instinct offering, mainly the MI350, and updates on future products like MI400 and beyond. The analyst is also looking forward to information on any updates to the ROCm software stack and progress on rack-scale solutions, given that the ZT Systems deal has been finalized. Muse is also keen about any updates on the AI TAM (total addressable market), with the time frame likely moved to 2029 or 2030. Notably, he sees “a likely bump to the TAM towards ~$600B.”
Muse expects investors’ focus to be on new potential customer wins, with optimism that AMD’s AI Accelerator revenues could trend closer to $10 to $12 billion (compared to his expectation of $8 billion), driven by the MI400 ramp. This would help in achieving the vision to deliver more than $6 in EPS in 2026 and a stock price target close to $150 or more.
Overall, Muse expects Advanced Micro Devices’ Advancing AI event to be “a modest positive.” He sees greater confidence building later this year for the Instinct revenue ramp into 2026. Further, he thinks that AMD stock could take a near-term halt after a rally of more than 50% from April lows. Over the longer term, the top-rated analyst sees the potential for AMD to generate $25 to $50 billion in GPU Accelerator revenue (estimating 5% to 10% market share of the $500 billion TAM), which could help deliver over $10 in annual EPS.
Muse ranks 217 out of more than 9,600 analysts tracked on TipRanks. He boasts a success rate of 64%, with an average return per rating of 23.6% over a one-year timeframe.
Is AMD Stock a Buy or Sell Now?
AMD stock has rallied more than 18% over the past month, thanks to easing trade tensions and the company’s upbeat Q1 results. However, the stock is flat on a year-to-date basis.
Given uncertainty about chip restrictions and macro woes, Wall Street has a Moderate Buy consensus rating on AMD stock based on 22 Buys and 10 Hold recommendations. The average AMD stock price target of $127.93 implies a 5.1% upside potential.
