Wall Street investment firm Truist Securities released its latest research report, upgrading AMD’s (AMD) stock rating from “Hold” to “Buy” and significantly raising its 12-month target price from $173 to $213. The firm stated that the upgrade is primarily based on AMD’s demand performance in data center CPUs and AI computing chips far exceeding expectations, demonstrating strong growth momentum.
Truist emphasized in the report that some hyperscale customers focused on AI infrastructure are seriously considering a moderate shift from NVIDIA’s (NVDA) AI server clusters to AMD to obtain AI computing solutions with better cost and comprehensive performance advantages. This suggests that NVIDIA’s 90% market share in AI chips and server clusters may gradually be eroded by AMD in the future. Additionally, reports indicate that AMD is collaborating with IBM to develop a next-generation quantum computing architecture called “Quantum-Centric Supercomputing.” Driven by these positive developments, AMD’s stock rose over 3% in early trading on Tuesday.
William Stein, a senior analyst at Truist, stated in an investor report that over the past few years, hyperscale customers viewed AMD’s computing infrastructure merely as a “cheap supplement” to NVIDIA. However, a significant shift has occurred recently. Over the past month or so, industry contacts and buyers/sellers have widely noted that hyperscale customers are actively collaborating with AMD as long-term partners and have expressed genuine intentions to deploy AMD’s AI server clusters at scale.
The report also highlighted that AMD’s next-generation AI GPU, the MI355, launched earlier this summer, is expected to become a key driver of growth for the chip giant in the coming quarters. Meanwhile, AMD’s collaboration with IBM aims to develop an advanced architecture based on the integration of quantum computing and high-performance computing, helping enterprises efficiently scale high-computing-intensity AI workloads using IBM’s secure hybrid cloud environment.
Recently, Bank of America’s equity analyst team also maintained “Buy” ratings for both NVIDIA and AMD stocks, with 12-month target prices of $220 and $200, respectively, after the two companies agreed to surrender 15% of their AI chip export revenues to the U.S. government in exchange for export licenses to China.
At the Advancing AI 2025 conference held on June 12, AMD launched the new MI350 series AI GPUs, including the MI350X and MI355X models, specifically designed to handle extremely complex and large-scale AI training and inference workloads. AMD claims that the new accelerators offer up to three times the performance of the previous-generation MI300X, directly targeting NVIDIA’s Blackwell architecture product line.
