Advanced Micro Devices rose 2.5% in pre-market trading on Tuesday as Raymond James upgraded the stock to Strong Buy from Outperform and raised its price target to $641 from $565.
The upgrade reflects Raymond James' long-term growth thesis for AMD, centered on the company's expanding role in AI server CPUs. The brokerage projects a 44% compound annual growth rate over the next five years, with revenue expected to reach approximately $201 billion by 2030.
Raymond James cites datacenter expansion, CPUs' coordination of AI accelerators, and the rise of agentic computing workloads as key catalysts supporting its outlook. AMD's shares have traded between $149.22 and $584.73 over the past 52 weeks.
The broader market showed modest gains in pre-market trading, with the S&P 500 up 0.4%, the Dow Jones Industrial Average rising 0.4%, and the Nasdaq gaining 0.8%.
Nvidia is scheduled to release its second-quarter fiscal 2027 results after the market close on August 26, with analysts viewing the report as a barometer for the AI infrastructure ecosystem. AMD's performance and prospects remain closely linked to developments in the AI server market, where Nvidia is a dominant player.
