Overview
- Bernstein raised AMD’s price target to $600 and maintained an Outperform rating, projecting about $14.60 in EPS for fiscal 2027 with upside toward $20 by 2028 if AI trends continue.
- The firm also boosted Arm’s target to $500 and Intel’s to $100 while revising its server CPU total addressable market to $223 billion by 2030.
- Bernstein’s case rests on a shift it calls agentic AI, which it says increases CPU work in data centers and moves CPU-to-GPU ratios from multi-GPU setups toward roughly 1:1.
- The firm’s base-case assumes $3.5 trillion in AI data-center spending and a 1:1 CPU-to-GPU pairing for inference workloads, making its upgrades sensitive to actual cloud architecture choices and spending pace.
- The research marks a clear pivot in the investment story for AMD from crypto-era GPU demand to AI server growth and highlights risks from entrenched GPU ecosystems like Nvidia’s CUDA and regional competitors such as Hygon in China.