Stifel has reiterated its Buy rating and $635 price target for Advanced Micro Devices (AMD) following a meeting with the company’s investor relations team at an investor conference this week.

The discussion included Matt Ramsey, AMD’s CVP of Investor Relations, and Prabh Gowrisankaran, Director of Investor Relations. The executives expressed confidence in AMD’s server CPU roadmap and said the transition from chatbot inference to agentic inference has structurally expanded the total addressable market for CPUs.

AMD said it believes its Venice processor is currently the best agentic CPU on the market and that it has sufficient supply to meet current demand. The comments come as chipmakers continue working to keep pace with orders linked to artificial intelligence infrastructure.

Server CPU and GPU Developments

Stifel said the meeting increased its confidence in the durability of AMD’s EPYC server processor ramp. AMD also said the company’s MI450/Helios GPU product began revenue shipments this month, on schedule and concurrently with Nvidia’s ramp.

AMD identified the broader industry’s ability to build servers quickly—not customer demand—as the main constraint on growth in 2027. The company’s view suggests that server construction capacity, rather than demand for its products, could determine how quickly the market expands.

This makes execution across several parts of the supply chain important to AMD’s outlook: the availability of Venice processors, the pace of MI450/Helios shipments, the industry’s server-building capacity, and access to advanced packaging. TSMC’s August revenue growth and the company’s reference to tighter packaging capacity provide additional industry context for those supply considerations.

Twenty-seven analysts have recently revised their earnings estimates upward. Piper Sandler initiated coverage of AMD this week with an Overweight rating and a $600 price target. CLSA raised its target to $710, citing stronger-than-expected MI-455 GPU sales and higher earnings projections for fiscal years 2027 and 2028.

Earnings and Institutional Activity

AMD’s most recent earnings report, released on August 4, showed quarterly revenue of $11.54 billion, above the analyst consensus of $11.31 billion. Earnings per share came to $1.66, exceeding the $1.62 estimate. Revenue increased 50.1% year over year, while EPS rose from $0.48 in the same period a year earlier.

The Manufacturers Life Insurance Company increased its AMD position by 41.5% during the second quarter, bringing its holdings to nearly 1.97 million shares valued at approximately $1.14 billion. Institutional investors collectively own 71.34% of AMD.

Raymond James upgraded AMD to Strong Buy in late August and raised its price target to $641. The consensus analyst rating is Moderate Buy, with an average target of $565.12.

Insiders, however, sold $51.9 million worth of AMD stock during the past three months. Executive Vice President Jean Hu sold 15,000 shares at $474.08 in late August, while Executive Vice President Mark Papermaster sold 28,811 shares at $471.87 on August 20. Both transactions were carried out under pre-arranged Rule 10b5-1 plans.

ARK Invest’s Cathie Wood also continued trimming its AMD position during the period, reallocating capital to other artificial intelligence chip companies.

TSMC reported a 53.3% year-over-year increase in August revenue. The result supports AMD’s volume outlook while also pointing to tighter advanced-packaging capacity across the semiconductor industry.

Source: CoinCentral. The related filing is available from MarketBeat.