Analysts at AMD (AMD.US) release strong AI prospects daily, with multiple institutions reaffirming their bullish views. Stock price soared over 8%.

On Tuesday, American semiconductor company AMD announced its latest financial goals at an analyst day, reaffirming that spending related to artificial intelligence (AI) will continue to see strong growth in the foreseeable future, which boosted market sentiment. In early trading on Wednesday, AMD's stock price jumped over 8%. Wedbush analyst maintained AMD's "outperform" rating with a target price of $290. The firm stated in a report that AMD expects a compound annual growth rate (CAGR) of 35% in revenue over the next 3 to 5 years, driven primarily by the rapid growth of its AI business, implying that the company's performance is likely to exceed market and Wedbush's expectations. The report pointed out that AMD forecasts approximately 60% growth in its AI accelerator business, which is a key factor driving the upward revision of revenue expectations. Wedbush believes that AMD's collaborations with clients such as OpenAI, Meta, and Oracle are likely to further strengthen this growth trend. Wedbush added that the execution on the Helios/MI400 platform remains a key observation point for AMD. If the company's assessment is correct and the total addressable market (TAM) for server computing expands at an annual growth rate of 18% over the next few years, the server computing expectations in Wedbush's current model may be overly conservative. Additionally, Wedbush noted that if AI demand continues to outpace expectations, component manufacturers in the supply chain such as memory and hard drive makers may face capacity constraints, leading to a longer benign cycle. Bank of America Corp (BofA) maintained a "buy" rating on the stock with a target price of $300. The bank's analyst team wrote in a report that the AI market size and long-term performance guidance disclosed by AMD at the analyst day significantly exceeded expectations. BofA stated that AMD expects the total addressable market (TAM) for AI silicon chips to exceed $1 trillion by 2030, covering areas such as CPUs, GPUs, NICs, and high-end networking. If AMD achieves double-digit market share in this market, the company's annual revenue could soar from around $16 billion to over $100 billion. The analyst team, led by Vivek Arya, mentioned that although AMD did not announce any new large AI clients, the company has confirmed adoption plans from multiple megawatt-level clients starting from the second half of 2026 (MI450 series). Additionally, BofA sees the upcoming AWS re:Invent conference, scheduled for December 1-5, as a potential positive catalyst. KeyBanc Capital Markets maintained a "neutral" rating on AMD without providing a specific target price. The firm believes that while the growth trend in the AI business is positive, AMD still needs to prove its sustained execution and profitability in high-end computing platforms.