The Wall Street firm sees AMD's data center and AI accelerator business driving significant upside from current levels
Bernstein analyst Stacy Rasgon just handed AMD shareholders another reason to feel good about their positions. The firm bumped its price target on Advanced Micro Devices to $600 from $525, keeping its Outperform rating intact.
AMD closed at roughly $507 on June 16, the day before the revised target dropped. That means Bernstein sees about 18% upside from recent levels.
The AI thesis keeps getting louder
This price target hike is the second major revision in barely two months. Back in May 2026, Bernstein upgraded AMD from Market Perform and set a $525 target. That was already a massive jump from the previous $265 target.
Bernstein’s analysis points to projected fiscal year 2027 earnings per share of around $14.60 for AMD. If current AI growth trends hold, that number could climb to $20 by 2028.
Rasgon isn’t even the most bullish voice in the room. Some analyst projections for AMD range between $625 and $665, suggesting that Bernstein’s $600 target sits closer to the middle of the optimistic camp than the far edge.
From crypto darling to AI heavyweight
AMD’s GPUs were once a go-to choice for cryptocurrency miners. The company’s hardware powered mining rigs during multiple crypto boom cycles. The investment thesis around AMD has now pivoted decisively toward AI and server growth, with strategic partnerships and expanded server demand as the headline drivers.
What this means for investors
At $507, AMD is already priced for substantial growth. If the company delivers $14.60 in EPS for fiscal 2027, that puts the stock at roughly 35 times forward earnings. That multiple could be justified if the $20 EPS target for 2028 materializes.
Nvidia’s CUDA ecosystem remains deeply entrenched in AI development workflows, making it genuinely difficult for customers to switch even when AMD’s hardware is competitive on price and performance.
