--- title: "Wall Street gradually accepts \"CPU is king\"! AI agents ignite demand, analysts are raising AMD's target price" type: "News" locale: "en" url: "https://longbridge.com/en/news/285463924.md" description: "Wall Street is gradually accepting the reality of CPU dominance, with AMD's strong performance leading analysts to raise their target prices. Wedbush Securities analyst Matt Bryson raised AMD's target price from $400 to $450, expecting a year-on-year sales growth of about 70% in the second quarter. Jefferies analyst Kevin Garrigan pointed out that although server CPUs are in the spotlight, AMD's GPU business is also poised to enter a new phase, with an expected long-term compound annual growth rate of over 80% for data AI in the coming years" datetime: "2026-05-07T01:15:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285463924.md) - [en](https://longbridge.com/en/news/285463924.md) - [zh-HK](https://longbridge.com/zh-HK/news/285463924.md) --- # Wall Street gradually accepts "CPU is king"! AI agents ignite demand, analysts are raising AMD's target price According to Zhitong Finance APP, AMD (AMD.US) saw its stock price soar after announcing its earnings, and Wall Street is optimistic as well. Analysts pointed out that based on AMD's performance and guidance, the company led by Lisa Su is one of the main beneficiaries of the rise of artificial intelligence for intelligent agents. In the field of intelligent agent AI, the demand for CPUs is now as high as the demand for GPUs during the rise of generative AI (and it remains so). Therefore, Wall Street is gradually accepting the reality of CPU dominance. Wedbush Securities analyst Matt Bryson rated AMD as "outperform" and raised the target price from $400 to $450 after the earnings announcement. In a report to clients, Bryson wrote: "AMD's first-quarter performance was strong, mainly due to server computing revenue exceeding expectations (growing over 50% year-on-year), and management expects sales to accelerate further in the second quarter (growing about 70% year-on-year). The acceleration in growth is due to increases in both shipment volume and average selling price, with demand growth primarily attributed to computer architectures supporting intelligent agent AI. Management indicated that AMD expects this trend to continue driving growth in AMD server CPUs until 2026 and even 2027." Jefferies analyst Kevin Garrigan stated that while server CPUs have garnered significant attention, the company's GPU business appears ready to take a step up. In a report to clients, Garrigan wrote: "In terms of GPUs, MI450/Helios is still on track for mass production in the second half of 2026 (with initial shipments in the third quarter and significant growth in the fourth quarter), and forecasts from major customers have currently exceeded their initial plans. The customer channel continues to expand, and AMD is confident in achieving over 80% long-term compound annual growth rate for data AI in the coming years." He noted that although AI revenue from data centers saw a slight quarter-over-quarter decline, both server CPU and data center AI revenues are expected to achieve double-digit percentage growth this quarter. "The outlook for the server CPU market is brighter, but mass production of MI450/Helios remains key," Garrigan added. He reiterated his "buy" rating on AMD and raised the target price from $300 to $415. Nevertheless, CPUs remain the star product at this exhibition, with Lisa Su stating that the company is witnessing "significant" growth in CPUs and expects the market to grow at a rate of 35% per year, reaching $120 billion by 2030. Morgan Stanley analyst Joseph Moore wrote in a report to clients: "Given the stock's sharp volatility, we initially thought the market's enthusiasm for servers had been reflected in the stock price, but in recent weeks, the market's enthusiasm for CPUs seems endless, and management's long-term comments may be more influential than the moderate short-term uptick." After AMD announced its earnings, Moore raised AMD's target stock price from $360 to $410. He stated, "The world has changed," and despite some issues faced by Intel (INTC.US), AMD remains in a "very strong position" to gain market share. "Intel has claimed that they have fabs, which allows them to gain market share, but AMD seems to categorically deny this view, stating that they are confident in their supply chain to meet market demand, while also reiterating their belief that they can capture a majority market share (including ARM) by 2030," Moore added. "We believe in AMD's CPU prospects." ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [VGT.US](https://longbridge.com/en/quote/VGT.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [JEF.US](https://longbridge.com/en/quote/JEF.US.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) ## Related News & Research - [AMD Will Focus on Diverse Offerings as CEO Lisa States Data Centers Will 'Need a Broad Portfolio of CPUs"](https://longbridge.com/en/news/285416602.md) - [AMD Q1 results should get boost from 'strong AI demand,' Wedbush says](https://longbridge.com/en/news/285073524.md) - [Zyphra and AMD Partner to Power Zyphra Cloud on AMD Instinct™ MI355X GPUs | AMD Stock News](https://longbridge.com/en/news/285111493.md) - [Lisa Su Says AMD Has Secured Critical AI Memory Supply, But Rising Prices Threaten PC And Gaming Demand](https://longbridge.com/en/news/285342131.md) - [Arm Faces Questions Over AI CPU Niche Erosion As Competition From AMD, Intel, Nvidia Heats Up, But CEO Says Nice To See 'Rest Of Market' Catch Up](https://longbridge.com/en/news/285511984.md)