1 Wall Street Analyst Just Upgraded AMD Stock and Estimates 30% Upside. Here's Why He's Bullish on This Semiconductor Stock.

Raymond James analyst Simon Leopold upgraded AMD to strong buy with a $641 price target, marking a 30% upside from current levels. The upgrade hinges on accelerating server CPU growth driven by agentic AI deployments in data centers.

AMD forecasts server CPU revenue to climb over 80% year-over-year in the second half of 2026 and above 70% in 2027. The company expects the CPU-to-GPU ratio in data centers to shift to 1-to-1, up from historical norms that favored GPUs more heavily for AI workloads. Leopold views this architectural shift as evidence of expanding total addressable market share for AMD's server processor business.

AMD currently trades at a price-to-earnings ratio of 116, well above semiconductor sector averages. Despite the premium valuation, Leopold sees the stock offering the best combination of earnings leverage and market-share capture potential among chip peers.

The strong buy rating reflects confidence that AMD will sustain share gains in the server market as hyperscale cloud providers and enterprises build out agentic AI infrastructure requiring balanced compute architectures.