Melius upgrades AMD to 'buy' on strong GPU demand forecast

ReutersJun 23, 2025 12:45 PM

Melius Research upgrades Advanced Micro Devices's AMD.O stocks to "buy," citing stronger demand for graphics processing units (GPUs) in 2026–2028, driven by sustained AI inferencing, boosting appeal to hyperscalers and sovereigns

Raises PT to $175 from $110; a 36.46 % upside to stock's last close on Friday

AMD shares up ~1% at $129.33 in premarket trading

Brokerage sees AMD maintaining a performance edge over Intel INTC.O for at least the next two years while also gaining more recognition and support from top enterprise vendors like Dell DELL.N

"If AMD were to achieve over 5% of the accelerator market by 2028, we see scenarios with EPS over $9", adds Melius

Average rating of 52 analysts is "buy"; median PT is $132 — data compiled by LSEG

As of last close, AMD up ~6.16% YTD

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