Key Takeaways
- Following AMD’s Advancing AI event, RBC Capital maintained its Sector Perform rating with a $540 price objective
- Advanced Micro Devices unveiled a groundbreaking collaboration with Anthropic involving up to 2 gigawatts of MI450-series GPU infrastructure and up to $5 billion in equity capital
- Analysts estimate the Anthropic agreement could deliver between $10 billion and $20 billion in additional revenue, with the first 1GW phase concentrated in 2027
- Several Wall Street firms increased their price objectives post-event, with Baird reaching $1,250, Melius at $660, UBS at $730, Jefferies at $640, and Cantor Fitzgerald at $700
- The company’s latest quarterly performance delivered earnings per share of $1.37 and sales of $10.25 billion, surpassing expectations and marking a 37.8% annual revenue increase
Shares of AMD began Friday’s session at $539.69, positioning the company at an $880 billion market capitalization. The semiconductor giant currently trades at approximately 177 times earnings, with a 52-week trading range spanning $149.22 to $584.73.
Advanced Micro Devices, Inc., AMD
This week’s headline development centers on the Anthropic collaboration. Advanced Micro Devices plans to provide up to 2 gigawatts of Instinct MI450-series GPU capacity for Anthropic, accompanied by an equity commitment reaching $5 billion. The magnitude of this arrangement stands out as significant for the industry.
Company executives indicated the initial 1 gigawatt rollout is anticipated to scale predominantly throughout 2027. Revenue associated with this opening phase alone is projected to generate $10 billion to $20 billion.
The announcement arrived during AMD’s Advancing AI 2026 conference, where the chipmaker simultaneously introduced its Helios rack-scale AI infrastructure and revised upward its addressable market projections for both GPUs and CPUs.
Additionally, AMD revealed a collaboration with Cerebras focused on developing an ultra-low-latency AI inference system. This joint platform is scheduled for deployment via Cerebras Cloud during the latter half of 2026.
Wall Street Response
The Anthropic agreement sparked considerable analyst coverage. Baird demonstrated the most bullish stance, elevating its price objective to $1,250 while forecasting AMD’s AI GPU revenue will reach $147 billion by 2030.
Melius increased its target to $660, estimating the Anthropic partnership could generate up to $17 billion in revenue by 2027. UBS elevated its objective to $730, emphasizing AMD’s server CPU prospects and earnings per share potentially approaching $30 by 2028.
Jefferies boosted its target to $640, underscoring AMD’s server market dominance and broadening AI client base. Cantor Fitzgerald maintained its Overweight stance while establishing a $700 target, suggesting approximately 30% appreciation potential from the previous closing price.
RBC Capital preserved its Sector Perform rating and $540 objective. The firm incorporated the Anthropic deal into updated financial models but expressed a preference for observing concrete Helios volume expansion before adopting a more optimistic outlook. The analysts identified component availability, rack-scale implementation challenges, and competitive pressures as primary concerns.
Financial Performance and Executive Trading
AMD’s most recent quarterly disclosure, published May 5, revealed earnings per share of $1.37, exceeding the $1.29 analyst consensus. Sales reached $10.25 billion, surpassing the $9.90 billion projection and representing a 37.8% year-over-year expansion. Current analyst projections anticipate full-year earnings per share of $6.25.
Regarding insider transactions, CEO Lisa Su divested 125,000 shares at an average price of $460.69 on June 10 through a predetermined 10b5-1 trading arrangement. EVP Paul Darren Grasby sold 24,376 shares during May at an average of $444.39.
Corporate insiders have collectively sold 310,310 shares valued at approximately $141 million during the past three-month period. Institutional ownership represents 71.34% of outstanding shares.
AMD’s 50-day moving average stands at $510.65, while its 200-day moving average is positioned at $339.41.
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