TLDR
- AMD jumped 6.19% on Friday, closing at $512.93
- AMD closed a record $4.75 billion bond sale, its largest investment-grade debt offering ever
- Bank of America raised its 2030 server-CPU market forecast to over $210 billion, naming AMD its top pick
- Management expects server revenue to grow more than 80% in the second half of 2026
- Wall Street analysts hold a Strong Buy consensus with an average price target of $647.04
AMD had a strong Friday, climbing 6.19% to close at $512.93, driven by two major catalysts that hit the market at roughly the same time.
The chipmaker closed a record $4.75 billion bond sale, its largest investment-grade debt offering ever. The deal was spread across four tranches, and demand from institutional investors was strong enough that AMD priced its longest-dated bonds below early guidance. That’s a good sign for investor confidence in the company’s direction.
The proceeds are expected to fund AMD’s AI hardware push and heavy capital spending plans.
Bank of America Turns Bullish on CPUs
Bank of America analyst Vivek Arya raised the bank’s 2030 server-CPU market forecast from around $170 billion to over $210 billion. AMD was named the bank’s top pick in the sector.
Arya’s thesis centers on “agentic AI,” which he says is shifting data center architecture toward a more balanced CPU-to-GPU ratio. That’s a change from the GPU-heavy setups that dominated in recent years, and AMD stands to benefit given its clock speeds and high core counts.
The analyst pointed to both cloud and enterprise server demand as growth areas for AMD going forward.
AI Customers and Product Momentum
AMD’s Technology Leadership Forum also kept investors upbeat. Management guided for server revenue growth of more than 80% in the second half of 2026 and at least 70% in 2027. Its broader AI data center business is projected to grow over 100% next year.
On the product side, AMD is expected to begin shipping its Helios AI racks in September. Meta, OpenAI, and Anthropic have all signed multi-gigawatt compute deals. Anthropic alone committed up to 2 GW of MI450-series capacity.
AMD also announced Day 0 support for the Qwen3.8 27B AI model across its Ryzen AI Max+ systems and Radeon AI PRO hardware, a move aimed at deepening its footprint with AI developers.
Quarterly results from August 4th showed AMD posted $1.66 EPS, beating the $1.62 consensus estimate. Revenue came in at $11.54 billion, up 50.1% year over year and ahead of the $11.31 billion estimate.
Institutional ownership sits at 71.34% of AMD stock. Baird has a $1,250 price target on the stock, while Goldman Sachs recently raised its target to $640.
The average Wall Street price target stands at $647.04, implying about 31% upside from Friday’s close. On the risk side, insiders sold $74.7 million worth of stock over the past 90 days, and AMD’s valuation remains elevated at a PE ratio of 132.23.
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