By AMD stock gained 2% on Tuesday after Piper Sandler reiterated its Overweight rating on Advanced Micro Devices Inc. and maintained a $600 price target.
The stock was trading at $504.62 and has risen more than 213% over the past year.
The rating followed AMD’s third-quarter pre-quiet-period call, during which management provided updates on its product pipeline and demand environment.
Piper Sandler sees strong demand across AMD’s portfolio
Piper Sandler analyst David O’Connor said the overall message from AMD’s investor relations team was reassuring, with ramp-ups across its central processing unit and graphics processing unit products remaining on track.
Demand continues to exceed available supply across AMD’s product portfolio, according to the analyst.
The discussion covered several areas, including the ramp-up of Helios servers, Venice CPUs, the Optics scale-up architecture, high-bandwidth memory supply, broader memory dynamics, margins, and the company’s client and gaming businesses.
O’Connor said the relevant programmes were progressing as planned, with supply in place to support AMD’s guidance and potentially exceed expectations.
He described the tone of the discussion as positive, adding that the business was operating at full speed as demand continued to outpace supply.
Piper Sandler views AMD as a key investment opportunity linked to the growth of agentic artificial intelligence.
The firm initiated coverage of AMD last week and published an in-depth thematic report on AI computing titled “Starving for Compute.”
Semiconductor demand remains strong
The broader semiconductor industry is also benefiting from strong demand, despite concerns about a potential slowdown in AI infrastructure investment.
Bank of America has forecast that the semiconductor industry’s total addressable market will nearly double from $1.7 trillion in 2026 to $3.2 trillion by 2030.
The bank expects growth to be driven mainly by memory and data centres, alongside an incremental recovery in the automotive and industrial sectors.
BofA analysts led by Vivek Arya said they had seen no signs of slowing customer orders, long-term agreements, capacity commitments or semiconductor pricing, despite rising concerns about AI infrastructure spending.
The analysts noted that recent DRAM and NAND memory pricing remained broadly flat week over week.
They also pointed to rising GPU rental prices as an indicator of continued demand.
Nvidia’s B200 GPU rental price was cited at $5.72 per hour, up consistently over the previous two months and less than 10% below its approximate $6.10 peak in March.
AMD has also indicated that it is not seeing signs of a slowdown in customer orders.
BofA identifies potential semiconductor leaders
Arya said 2027 remains largely fully booked or contracted across compute, networking and memory suppliers.
He added that 2028 could also remain constrained, driven by stronger demand for CPUs, XPU attachment, new optics-based scale-up technologies and AI accelerators from application-specific integrated circuit and GPU vendors.
Although the semiconductor sector could remain rangebound in the near term, BofA identified several companies that may show greater resilience.
The bank highlighted Nvidia and AMD in compute, Marvell in networking, and Analog Devices and onsemi in analog chips.
It also said Micron, Lam Research, Applied Materials and Intel could lead gains if market momentum returns.
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