SANTA CLARA, August 26, 2026, 05:00 EDT
- AMD finished Tuesday at $479.18, gaining 4.91%, following a target price increase to $641 by Raymond James.
- The increase boosted equity value by about $36.6 billion.
- Data Center revenue for the second quarter rose twofold to $6.72 billion.
- Delayed premarket data at 04:35 EDT showed the stock at $480.48.
Advanced Micro Devices stock rose 4.91% on Tuesday as Raymond James raised its rating on the chipmaker to Strong Buy. Advanced Micro Devices, Inc. (NASDAQ:AMD) finished the session at $479.18, gaining $22.44. Shares added 0.27% in early premarket trading on Wednesday, according to MarketWatch price data.
Raymond James raised its price target to $641 from $565, signaling a potential 33.8% gain from Tuesday’s closing price. Analyst Simon Leopold pointed to AMD’s standing in server CPUs and the demand for agentic artificial intelligence as reasons Investor’s Business Daily.
The upgrade triggered a significant increase in valuation. Tuesday’s rise boosted AMD’s market capitalization by an estimated $36.6 billion, which is approximately 5.5 times its most recent quarterly Data Center revenue.
Hitting $641 would increase Tuesday’s market value by around $264 billion. This amount equals approximately 39 times the Data Center segment’s quarterly sales, highlighting the scale of expected future growth embedded in the target.
| Investor measure | Latest figure | Context |
|---|---|---|
| AMD close | $479.18 | Aug. 25; rose 4.91% |
| Raymond James target | $641 | Implying a 33.8% gain |
| Analyst consensus target | $553.72 | Suggests 15.6% upside |
| Q2 Data Center revenue | $6.72 billion | Increase of 107% from prior year |
| Q3 revenue outlook | $13.0 billion ± $300 million | Expected to grow roughly 41% year-over-year |
Raymond James projects the server-processor market will hit $201 billion by 2030, anticipating a compound annual growth rate of 44%. The firm links $168 billion of that total to demand tied to AI.
AMD led gains among major publicly traded chipmakers on Tuesday. Nvidia climbed 2.19%, Arm increased 1.19%, and Intel was up 0.25%. The performance highlights a company-specific upgrade benefit in addition to sector-wide strength in semiconductors.
Roughly 19.0 million AMD shares were traded. This represented just 67% of the stock’s average volume over the past 65 days. While the price reaction was notable, the volume was not especially high AMD price history.
The financial base grew rapidly. AMD posted second-quarter revenue of $11.54 billion, marking a 50% increase. Non-GAAP gross margin stood at 56%, with adjusted earnings coming in at $1.66 per share AMD results.
Data Center revenue rose 107% to $6.72 billion. The segment reported operating income of $2.10 billion, indicating an operating margin of about 31.3%, according to company data.
The segment covers both AI accelerators and server CPUs. As a result, investors cannot attribute all the reported growth solely to the processor market referenced by Raymond James. AMD does not break out individual revenue figures for these components.
Wall Street holds a favorable outlook, though with less enthusiasm than Raymond James. Forty-six analysts rate the stock as a Moderate Buy. The consensus price target averages $553.72, suggesting an upside of 15.6% MarketBeat analyst data.
With current valuation, there is limited tolerance for missteps in execution. AMD shares are trading at roughly 123 times trailing earnings. The stock price has surged over 100% since the start of the year, but it is still approximately 18% beneath its 52-week peak.
Risks: Raymond James’ market outlook could be overly optimistic. Competition from Intel, Arm-based architectures, and custom chips for cloud computing may impact market share or pricing. Additional risks include supply limitations, export regulations, and reliance on third-party manufacturing.
The key question is if demand supports AMD’s third-quarter forecast. Management projects revenue around $13.0 billion, with a possible variation of $300 million in either direction. Investors are set to monitor data-center expansion and margin performance in light of Tuesday’s increased valuation.
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