AMD Stock: Anthropic Deal and AI Event Fuel Analyst Upgrades

TLDR

• RBC Capital reiterated a Sector Perform rating and $540 price target on AMD after its Advancing AI event
• AMD announced a landmark partnership with Anthropic covering up to 2 gigawatts of MI450-series GPU deployments and a planned $5 billion equity investment
• The Anthropic deal could generate $10–$20 billion in incremental revenue, with the initial 1GW ramp expected mostly in 2027
• Multiple analysts raised price targets following the event, including Baird ($1,250), Melius ($660), UBS ($730), Jefferies ($640), and Cantor Fitzgerald ($700)
• AMD’s most recent quarterly results showed EPS of $1.37 and revenue of $10.25 billion, both beating estimates, with revenue up 37.8% year-over-year

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AMD opened Friday at $539.69, giving it a market cap of $880 billion. The stock trades at a P/E ratio of around 177, and its 52-week range runs from $149.22 to $584.73.

Advanced Micro Devices, Inc., AMD

The week’s big story is the Anthropic partnership. AMD will deploy up to 2 gigawatts of its Instinct MI450-series GPUs for Anthropic, with an equity investment of up to $5 billion attached. That’s a deal hard to ignore.

Management said the first 1 gigawatt of that deployment is expected to ramp mostly in 2027. The revenue tied to that initial phase alone could reach $10 to $20 billion.

The deal was announced alongside AMD’s Advancing AI 2026 event, where the company also unveiled its Helios rack-scale AI platform and raised its GPU and CPU total addressable market estimates.

AMD also announced a partnership with Cerebras to build an ultra-low-latency AI inference solution. That combined platform is expected to roll out through Cerebras Cloud in the second half of 2026.

Analyst Reactions

The Anthropic deal triggered a wave of analyst activity. Baird moved the most aggressively, raising its price target to $1,250, projecting $147 billion in AI GPU revenue for AMD by 2030.

Melius raised its target to $660, citing the Anthropic deal as potentially contributing up to $17 billion in revenue by 2027. UBS went to $730, pointing to AMD’s server CPU outlook and expectations of EPS approaching $30 by 2028.

Jefferies lifted its target to $640, highlighting AMD’s server leadership and expanded AI customer base. Cantor Fitzgerald held its Overweight rating and set a $700 target, implying roughly 30% upside from the prior close.

RBC Capital kept its Sector Perform rating and $540 target. The firm updated its estimates to include the Anthropic deal but said it wants to see evidence of Helios volume ramps before getting more bullish. It flagged component supply, rack-scale execution, and competition as key risks.

Earnings and Insider Activity

AMD’s last quarterly report, released May 5, showed EPS of $1.37, beating the $1.29 consensus. Revenue came in at $10.25 billion, topping the $9.90 billion estimate and up 37.8% year-over-year. Analysts currently forecast full-year EPS of $6.25.

On the insider front, CEO Lisa Su sold 125,000 shares at an average price of $460.69 on June 10, under a pre-arranged 10b5-1 plan. EVP Paul Darren Grasby sold 24,376 shares in May at an average of $444.39.

Insiders have sold a total of 310,310 shares worth approximately $141 million over the past three months. Institutional investors hold 71.34% of the stock.

AMD’s 50-day moving average sits at $510.65, and its 200-day moving average is $339.41.