Melius Maintains Buy on AMD, Citing Multi-Year Growth Visibility

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the AI Stocks Investors Are Watching. On November 12, Melius Research raised its price target on the stock to $380 from $300 while maintaining a Buy rating.

The firm maintains a positive outlook on the stock as it sees AMD on a realistic path to capture 10% of the AI market share and solid visibility into multi-year earnings growth.

Melius stated how the margin guide for AMD has been the “real positive surprise” in its recent financial outlook. Meanwhile, its 35%+ revenue growth CAGR “backs a double-digit share in AI semis/networking” alongside a “$150B or so in revenue by 2030.”

According to the firm, AMD is striving for a significant share of the $1T market cap with these growth aspirations. While it may need OpenAI funding and “a lot of” execution to achieve the goal, a 10% market share seems more realistic, the analysts note.

“AMD seems to clearly be targeting a $1T market cap with these aspirations. Although there is a lot of execution and OpenAI funding needed to get there, a share of 10%+ seems realistic. We are raising our 2027–2028 estimates and target to $380 from $300. Reiterate Buy.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 AI Stocks in the Spotlight This Week.

Disclosure: None.