For years, Advanced Micro Devices (AMD) has been viewed more as a second fiddle in the AI chip space. Competitive, yes, but rarely the first choice.
Now, Truist’s William Stein sees that narrative bending. In his latest price target revamp on AMD stock, he flags a structural shift that few saw coming.
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That reframe doesn’t just tweak the math but effectively challenges the core thesis on who’s gaining ground in the AI infrastructure race.
When the deployment dynamics shift, so does everything else, including pricing power, market share, and long-term market relevance.
AMD price target raised due to AI momentum, says Truist
William Stein is a 5-star tech analyst at Truist, with a keen eye on the high-interest semiconductor space.
Per TipRanks, he ranks #3 of 10,004 Wall Street analysts and #14 of 41,869 experts. Also, he boasts a tremendous 77% success rate and 32.4% average return across tracked calls.
Lately, his coverage has zeroed in on AI infrastructure and the competitive dynamics that shape next-gen computing.
And Stein recently dropped a massive bullish call on AMD stock.
In his latest note, he bumped AMD stock’s price target from $173 to $213, upgrading it to “buy” from “hold.” He cites growing AI and data center demand and a shift in how major cloud players view AMD compared to Nvidia.
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Stein writes:
“For the last several years, our industry contacts (component buyers/sellers) have told us that hyperscale customers deploying AI were experimenting with AMD’s technology as a ‘price check’ to NVDA, nothing more.”
However, he feels that’s changing.
“Over the last month or so, contacts have increasingly noted that hyperscalers are working with AMD in a partnership manner, expressing true interest in deploying AMD at scale.”
That reinvigorated stance coincides with the launch of AMD’s MI355 GPU earlier in the summer.
Stein feels it should be a critical growth driver in the upcoming quarters, especially with the rising AI spending and customers looking for viable Nvidia alternatives.
Hence, if AI hyperscalers start deploying AMD chips at scale, it could add new layers to its illustrious growth story.
What makes AMD a top AI-chip play
AMD’s AI rise is essentially built on three sturdy pillars, which include its surging Instinct GPU lineup, a robust EPYC server CPU footprint, and an evolving enterprise-ready open software platform, ROCm.
Also, the numbers show that those growth engines are firing.
In Q2 2025, AMD posted a superb $7.69 billion in revenue, up 32% year over year, with Data Center sales surging 14% to $3.24 billion.
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These numbers are especially impressive, considering the impact of the China-related headwinds. For Q3, it expects to post $8.7 billion, signaling a healthy MI350 ramp.
AMD’s server market share jumped to 27% in Q1 2025, as per Mercury Research, proving EPYC is a smashing success for cloud hyperscalers.
For perspective, Microsoft says AMD’s robust MI300X chips power both in-house and open-source AI models in Azure, while Cohere’s potent Command also runs on AMD hardware.
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Additionally, the ROCm 7 updates layers into the broader framework along with deeper enterprise tools.
Throw in the new design wins (like HUMAIN), and the message is clear that AMD’s AI game is no longer potential; it’s solid progress.
AMD-IBM: Why their quantum supercomputer partnership matters
Perhaps the biggest twist in the AI world this week has been AMD’s team-up with IBM in taking quantum to the next level. They’re developing hybrid supercomputers, fusing quantum chips with AMD’s CPUs and GPUs.
These systems will handle complex AI and scientific workloads through quantum tech to supercharge problem-solving at insane speeds.
The first version is expected later this year.
For AMD, this isn’t about big revenue yet, but having a seat at the table for the next generation of computing.
Also, it gives AMD more exposure to IBM’s cloud and research tools, positioning it at the precipice of cutting-edge sectors like drug discovery or materials science.
Related: 114-year-old tech company makes deal to become quantum computing leader
