SANTA CLARA, California, August 26, 2026, 04:53 EDT – Shares of AMD climbed 4.9% after the company’s server-CPU market forecast increased by $37 billion, lifting the total projection to $201 billion.
- AMD finished at $479.18, rising 4.9%, following an upgrade to Strong Buy from Raymond James.
- The company increased its target to $641 and forecast the server-CPU market will reach $201 billion by 2030.
- The surge increased AMD’s market capitalization by approximately $37 billion on trading volume of 19.0 million shares.
Shares of Advanced Micro Devices rose on Tuesday following a Wall Street upgrade that positioned server processors as the next significant AI revenue stream. Advanced Micro Devices, Inc. (NASDAQ:AMD) gained 4.9% to close at $479.18.
Raymond James analyst Simon Leopold raised his rating on AMD to Strong Buy from Outperform and boosted his price target to $641 from $565, suggesting a potential 33.8% gain from Tuesday’s closing price.
Leopold projects that server-CPU revenue will grow at a compound annual rate of 44%. His outlook estimates the market will hit $201 billion by 2030, with $168 billion attributed to AI-related workloads. The core argument is that CPUs manage accelerators, memory, and networking within AI architectures.
The share surge was notable for being triggered by an analyst’s call. AMD added around $37.1 billion to its market value. Trading volume hit 19.0 million shares, figures from AMD’s price history show.
Operational data has improved further. AMD delivered all-time high revenue for the second quarter, reaching $11.5 billion, a 50% increase from a year earlier. Data Center revenue surged to $6.7 billion, accounting for 58% of total revenue and more than doubling compared to the prior year.
| Q2 2026 metric | Result | Investor signal |
|---|---|---|
| Total revenue | $11.5 billion; up 50% from a year ago | All-time high |
| Data Center revenue | $6.7 billion; more than twice prior year | Represents 58% of total |
| Client revenue | $3.1 billion; up 23% YoY | Ryzen sales stay firm |
| Gaming revenue | $779 million; down 31% YoY | Semi-custom weakness weighs |
| Embedded revenue | $977 million; up 19% YoY | Indicates wider rebound |
| Non-GAAP gross margin | 56% | Aligned with Q3 forecast |
AMD forecast third-quarter revenue at $13.0 billion, give or take $300 million. Analysts’ estimates were at $12.52 billion. The chipmaker expects an adjusted gross margin of 56%.
CPU market-share statistics back up the claims. In the first quarter, AMD captured 33.2% of x86 server unit shipments and accounted for 46.2% of server-CPU revenues. The disparity indicates that EPYC chips are being used in more premium deployments.
| Analyst opinion | Recommendation | Price target | Potential upside from $479.18 |
|---|---|---|---|
| Raymond James, August 25 | Strong Buy | $641 | 33.8% |
| Citi, June 12 | Buy | $575 | 20.0% |
| 46-analyst average | Buy | $553.72 | 15.6% |
Much execution is already reflected in the valuation. Following the surge, AMD’s market capitalization stood at roughly $795 billion. Its trailing price-to-earnings multiple was near 123. The average target price of $553.72 leaves significantly less room for gains compared to the projection from Raymond James.
Intel maintains its lead in server shipments, as Nvidia steps into the CPU market with Vera. Arm-based chips are increasing competition in the x86 segment. As a result, AMD must translate its recent share increase into consistent gains in revenue and margins.
The next sector benchmark arrives with Nvidia’s results following Wednesday’s close. Elevated hyperscaler investment would reinforce AMD’s demand outlook. Stricter customer spending may reveal the extent of optimism reflected in both share prices.
Risks: The $201 billion projection from Raymond James is an estimate rather than guaranteed income. Growth could be hindered by competition, limited supply, reliance on a small group of clients, or a downturn in the gaming cycle. Additionally, AMD relies on external foundries for advanced manufacturing processes.
Related articles: NASDAQ:AMD
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