Is AMD Stock a Buy After Evercore’s Price Target Hike?

TLDR

• Evercore ISI raised its AMD price target to $579 from $358, keeping an Outperform rating after Q1 AI channel checks.
• AMD gained 220 basis points quarter-over-quarter in server CPU unit share, reaching an estimated 24%.
• Citi raised its AMD price target to $460 from $358, citing a projected “CPU renaissance” driven by AI workloads.
• CEO Lisa Su met with Chinese Vice-Premier He Lifeng, raising hopes of eased U.S. AI chip export restrictions on China.
• Citi said industry talk suggests AMD may have secured Anthropic as a customer for its next-gen MI450 AI accelerators.

Advanced Micro Devices (AMD) stock was down 1.78% at $413.50 in premarket trading on Tuesday, even as two major Wall Street firms raised their price targets on the stock.

Advanced Micro Devices, Inc., AMD

Evercore ISI lifted its target to $579 from $358, the most bullish call of the day. The firm kept its Outperform rating and pointed to Q1 AI channel checks as the basis for the upgrade.

The key takeaway from those checks: AI workloads are moving from training to inference by the end of 2026. That shift is pushing hyperscalers to look harder at cost-per-token, ROI, and total cost of ownership — which is opening doors for alternative accelerators like AMD’s.

Evercore also flagged AMD’s server CPU momentum. The company picked up 220 basis points of quarter-over-quarter server CPU unit share in Q1, bringing its estimated share to around 24%. Intel holds 55%, Arm Holdings sits at 17%.

The firm sees the server CPU total addressable market growing from roughly 30 million annual units to between 75 million and 110 million units — a major expansion if those numbers hold.

Citi’s “CPU Renaissance” Call

Citi also raised its AMD price forecast, moving from $358 to $460, though the firm kept a neutral rating. Analyst Atif Malik said the server CPU market could reach $132 billion by 2030 as agentic AI drives more demand for CPU processing power.

Citi flagged AMD’s EPYC server chip momentum and its priority manufacturing access at Taiwan Semiconductor as key advantages.

The firm also said industry conversations suggest AMD may have landed Anthropic as a customer for its next-generation MI450 AI accelerators. A potential announcement could come at AMD’s Advancing AI event in July.

AMD’s analyst consensus currently sits at a Buy rating with an average price target of $446.76. Recent moves include Daiwa Capital raising its target to $500 on May 13.

CEO Meeting in China

CEO Lisa Su met with Chinese Vice-Premier He Lifeng, fueling expectations that Washington may ease some AI chip export restrictions on China.

The optimism follows reports that the Trump administration approved NVIDIA H200 AI chip sales to select Chinese firms. Analysts said Washington appears to be pulling back from broad tech decoupling and may allow upper-mid-tier chip sales while keeping restrictions on the most advanced products.

That said, Chinese firms are also ramping up adoption of domestic alternatives from Huawei and other local chipmakers.

Looking ahead, AMD’s next major catalyst is its earnings report, estimated for August 4, 2026. The Street expects EPS of $1.55, up from $0.48 a year ago, on revenue of $11.28 billion, up from $7.68 billion.

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