Piper Sandler initiated coverage on Advanced Micro Devices, Inc. (AMD) with an overweight rating. The firm established a $600 price target, suggesting significant upside from current trading levels.
Accelerating demand for CPU server chips in the agentic AI market drives the positive outlook. AMD is currently gaining market share as a primary beneficiary of this shift.
The company is also expanding its GPU footprint with the Helios product. AMD has secured major clients for this technology, including OpenAI, Meta, and Anthropic.
Piper Sandler projects a 50% compound annual growth rate for revenue from fiscal 2026 through 2030. Earnings per share are expected to grow at a 65% compound annual growth rate during the same period. This initiation follows recent price target hikes from CLSA and Raymond James.