Truist Upgrades AMD to Buy, Sets New Price Target of $213 Amid AI Sector Boom

Truist Securities upgrades Advanced Micro Devices (AMD) to Buy from Hold, with a price target of $213. The upgrade reflects booming demand from data centers and the acceleration of the artificial intelligence sector. Analyst William Stein expects AMD to secure close to 10% of GPU market share overtime and has increased earnings per share estimates to $7.89 for calendar year 2027.

Truist Securities has upgraded Advanced Micro Devices (AMD) to a 'Buy' rating from 'Hold', with a new price target of $213. This upgrade reflects the growing demand for data center solutions and the acceleration of the artificial intelligence (AI) sector. The move comes amidst a bullish outlook from Wall Street analysts, who expect AMD to secure a significant share of the GPU market and deliver strong earnings growth.

The upgrade by Truist Securities aligns with recent analyst activities, including upgrades and price target increases from other major financial institutions such as HSBC, UBS, and Citigroup. Analyst William Stein, who raised AMD's price target to $213 from $173, cited structural shifts in AI infrastructure and the adoption of AMD's MI355 GPU by hyperscalers as key drivers for the upgrade [1].

AMD's AI chip momentum is anchored in its Instinct series of GPUs, particularly the MI350 and MI400, which offer significant performance improvements over prior generations. These accelerators are gaining traction among hyperscalers like Microsoft, Meta, and OpenAI, which are prioritizing cost-efficient, high-performance solutions for large-scale AI training and inference workloads [2]. The company’s open-source ROCm software stack further differentiates it from Nvidia’s CUDA-centric ecosystem, appealing to developers and enterprises seeking alternatives to proprietary platforms [3].

Analysts project continued momentum for AMD, with Q3 2025 revenue expected to grow 28% year-over-year, driven by the MI350 series and EPYC CPU demand. William Stein expects AMD to secure close to 10% of GPU market share over time and has increased earnings per share estimates to $7.89 for calendar year 2027 [1].

However, AMD faces headwinds, including U.S. export controls on the MI308 chip to China, which pose a significant revenue risk. Additionally, rivals like Intel and Google are intensifying competition in a market projected to grow at a 30% CAGR through 2030 [2].

In summary, Truist Securities' upgrade to 'Buy' reflects the growing demand for data center solutions and the acceleration of the AI sector. While AMD faces competitive challenges, its strong product innovation and strategic partnerships position it well for future growth.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-hotchkis-wiley-capital-management-llc-boosts-stake-in-truist-financial-corporation-tfc-2025-08-23/
[2] https://www.ainvest.com/news/wall-street-analysts-upgrade-amd-downgrade-pdd-latest-research-calls-2508/
[3] https://www.ainvest.com/news/amd-strategic-position-ai-chip-market-wall-street-bullish-outlook-timely-investment-opportunity-valuation-dynamics-2508/