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

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.

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