Bernstein has raised its price target on Advanced Micro Devices to $600 from $525 while maintaining an Outperform rating. Analyst Stacy Rasgon projects approximately 18% upside from recent trading levels, marking the firm's second major revision in two months.
The upgraded forecast relies on aggressive earnings projections tied to artificial intelligence infrastructure. Bernstein estimates AMD will generate $14.60 in earnings per share for fiscal year 2027. If current AI adoption trends continue, that figure could reach $20 by 2028.
AMD has successfully pivoted its investment thesis from cryptocurrency mining to enterprise AI and server expansion. Despite this momentum, Nvidia’s entrenched CUDA ecosystem remains a significant competitive barrier. Customers face high switching costs even when AMD offers comparable hardware performance.
At current valuations, AMD trades at roughly 35 times forward 2027 earnings. This premium pricing assumes the company executes its long-term AI growth strategy without deviation. While some analysts project targets as high as $665, Bernstein’s revised outlook positions AMD firmly within the bullish consensus.