Home / Business and Economy / AMD Surges to $200 Price Target on AI Strength and Client Gains
AMD Surges to $200 Price Target on AI Strength and Client Gains
8 Aug
Summary
- Barclays raises AMD's price target to $200
- AMD's AI data center business sees $2.3B run rate
- Client segment shows 42% YoY ASP growth in June
In a recent development, Barclays analyst Tom O'Malley has raised the price target on Advanced Micro Devices, Inc. (AMD) to $200, up from the previous $130. O'Malley has maintained an "Overweight" rating on the stock, reflecting his continued optimism towards the company.
O'Malley's bullish stance is driven by the strong artificial intelligence trends in AMD's data center business and the company's ongoing market share expansion in its client segment. According to the analyst, AMD's MI-series chips are moving towards a run rate of approximately $2.3 billion as the year nears its end. This, the firm believes, is creating a clear path for AMD to surpass $10 billion in revenue in the calendar year 2026, excluding any future contributions from China.
In addition to the AI-driven growth in the data center segment, AMD's client business is also showing promising signs. The company has reported a 42% year-over-year increase in average selling prices (ASPs) in June, and it expects continued share gains in this segment. While AMD had previously guided for a flat second half of the year, the company is now revising its expectations, anticipating growth in the third quarter and a flat fourth quarter off a higher base.
Overall, the firm remains bullish on AMD, as the company is positioned to capitalize on multiple avenues of growth heading into 2026. The combination of strong performance in both the data center and client segments positions AMD for a bright future in the rapidly evolving technology landscape.
