AMD's Goal: $380 with 10% AI Market Share

About Advanced Micro Devices

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a significant player catching investors' attention among artificial intelligence (AI) stocks. Melius Research raised the stock price target from $300 to $380 on November 12, while maintaining the "Buy" rating.

The firm noted that AMD is on a realistic path to capture a 10% share of the AI market and provided a solid outlook for multi-year earnings growth. Melius stated that the guidance on margins was a "real positive surprise" in the latest financial outlook.

Additionally, according to the firm's estimates, AMD is supported by over 35% revenue growth and compound annual growth rate (CAGR), bolstering its double-digit market share in AI semiconductors and networks. It also brings up a revenue target of $150 billion by 2030.

According to the firm, AMD is competing for a significant share of the $1 trillion market value with these growth targets. Although reaching this goal requires financing from OpenAI and a significant application process, it is emphasized that a 10% market share is a more realistic target.

AMD is seriously pursuing these objectives. Considering the application and financing items needed to achieve the target, a market share target above 10% seems reasonable. At the same time, we are raising our 2027-2028 forecasts and increasing our target to $380. In this context, we reiterate our "Buy" recommendation.

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, processors, and graphics processing units (GPUs) for data centers, gaming, artificial intelligence, and embedded applications.

While acknowledging AMD’s investment potential, we believe that some AI stocks offer higher earnings potential and carry less risk. As a result, if you are looking for an incredibly undervalued AI stock that is expected to significantly benefit from tariffs during the Trump era and domestic production trends, we recommend reviewing our free report on the best short-term AI stocks.