Wall Street is gradually accepting "CPU is king"! The demand for AI smart bodies is driving up, and analysts are raising the target price for AMD (AMD.US) one after another.

After announcing the performance, the share price of AMD (AMD.US) soared, and Wall Street also expressed optimism. Analysts pointed out that from AMD's performance and guidance, the company led by Su Zifeng is one of the main beneficiaries of the rise of artificial intelligence in intelligent body artificial intelligence. In the field of intelligent body artificial intelligence, the demand for CPUs today is as high as the demand for GPUs when the era of generative artificial intelligence rose (and remains so). Therefore, Wall Street is gradually accepting the reality of CPU dominance. Wedbush Securities analyst Matt Bryson gave AMD an "outperform" rating and raised the target stock price from $400 to $450 after the performance announcement. In a report to clients, Bryson wrote, "AMD's performance in the first quarter was strong, mainly due to server computing revenue exceeding expectations (growing by over 50% year-on-year), and management expects sales to accelerate further in the second quarter (growing by about 70% year-on-year). The accelerated growth comes from increases in shipments and average selling prices, and demand growth is mainly attributable to the computer framework that supports intelligent body artificial intelligence. Management stated that they expect this trend to continue to drive growth in AMD server CPUs until 2026 and even 2027." Jefferies Financial Group Inc. analyst Kevin Garrigan stated that although server CPUs have been taking the limelight and attracting a lot of attention, the company's GPU business seems ready to take a step forward. Garrigan wrote in a report to clients, "In terms of GPUs, MI450/Helios is still scheduled to go into mass production in the second half of 2026 (preliminary shipments in the third quarter, significant growth in the fourth quarter), and forecasts for major customers have already exceeded their initial plans. The customer base continues to expand, and AMD has confidence in achieving over 80% compound annual growth rate for long-term data AI over the next few years." He pointed out that although data center AI revenue has slightly decreased, both server CPU and data center AI revenue are expected to achieve double-digit percentage growth this quarter. "The outlook for the server CPU market is even brighter, but the mass production of MI450/Helios is still key," Garrigan added. He reiterated his "buy" rating on AMD and raised his target price from $300 to $415. However, CPUs are still the star product of this exhibition. Su Zifeng stated that the company is witnessing "significant" growth in CPUs, and expects the market to grow at a rate of 35% per year, reaching $120 billion by 2030. Morgan Stanley analyst Joseph Moore wrote in a report to clients, "Given the sharp fluctuations in the stock, we originally thought that the market's enthusiasm for servers was already reflected in the stock price, but in the past few weeks, the market's enthusiasm for CPUs seems endless, and the long-term comments of management may be more influential than the moderate short-term increase." After AMD announced its performance, Moore raised the target stock price of AMD from $360 to $410. He stated, "The world has changed," despite some issues Intel Corporation (INTC.US) has faced, AMD still remains in a "very strong position" in gaining market share. "Intel Corporation has stated that they have chip factories and can gain market share, but AMD seems to firmly deny this view and express confidence in their own supply chain, being able to meet market demand, and reiterating their view that they can dominate the market by 2030 (including ARM)," Moore added. "We believe in the prospects of AMD CPUs."