AMD Stock Forecast: Why This Five-Star Analyst Raised the Chipmaker's Price Target by 41%
Complete. Here is the key summaryBenchmark analyst Cody Acree raised AMD's price target by 41% to $685, maintaining a Buy rating. This upgrade reflects AMD's new deals with Microsoft and Anthropic for its Helios AI system. The partnership with Microsoft involves using Helios for Azure cloud capacity, while the deal with Anthropic includes using Claude AI to enhance Instinct GPUs and ROCm software. Acree believes these collaborations provide immediate validation and software benefits, offering greater value than individually.
Shares in Advanced Micro Devices (AMD) edged higher during Friday's pre-market session. This came after Benchmark's five-star analyst Cody Acree raised his price target on the U.S. chipmaker by 41% to reflect its recent deals with tech giant Microsoft (MSFT) and AI startup Anthropic.
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AMD Secures New Microsoft, Anthropic Deals
On Monday, AMD announced that Microsoft (MSFT) will use its latest GPUs, CPUs, networking technology, and software to boost its Azure cloud platform. This capacity will be offered through AMD's Helios rack-scale AI system.
The chipmaker officially launched the system on Thursday at its flagship Advanced AI 2026 event. The system combines AMD's latest Instinct MI455X GPUs and the EPYC "Venice" CPUs. It also runs on the chipmaker's Pensando Vulcano network interface cards and ROCm open software for running AI workloads.
Similarly, AMD this week announced that Anthropic will also use Helios to generate up to 2GW of cloud computing capacity. In return, the chipmaker will use the startup's Claude AI model to improve the performance of its Instinct GPUs and further develop the ROCm software.
Why Is Benchmark Bullish on AMD's New Deals?
Reacting to the deals, Acree on Thursday maintained his Buy rating on AMD stock and lifted his price target from $485 to $685. The new price target implies about 27% upside from Thursday's closing price of $539.69.
The analyst believes that Microsoft's adoption of Helios in Azure gives AMD an earlier, more immediate chance to prove how powerful the system is. He also sees software development benefits from the Anthropic deal.
Acree argued that both deals offer more benefits to AMD than when considered separately.
Who Is Cody Acree?
As a five-star analyst, Acree ranks 38th out of the more than 12,000 Wall Street analysts tracked on TipRanks. He focuses on the U.S. tech industry and also covers companies such as Nvidia (NVDA), Intel (INTC), and Qualcomm (QCOM).
Acree currently boasts a 69% success rate and has generated about a 36% average return for investors with his ratings.