Baird has reiterated an Outperform rating on Advanced Micro Devices (AMD) and maintained a $300.00 price target, underlining several developments tied to the company’s AI-related product lines. The $300 target implies meaningful upside relative to AMD’s then-current share price of $242.11, although InvestingPro data cited by the research notes the stock is trading slightly above its Fair Value.
The research note singled out an acceleration in demand for AI-focused x86 server CPUs as a central growth driver for AMD. In parallel, Baird pointed to continued strength in AMD’s AI GPU efforts, noting that sales of the Mi308 chips have resumed. The firm also said the Mi450 product ramp and AMD’s partnership with OpenAI remain on track.
Baird signaled confidence in its forward unit modeling, remarking that it sees "meaningful upside in 2026 AI units forecasts versus a quarter ago expectations." The firm expects the coming Mi450 ramp to translate into market share gains for AMD within AI computing segments.
On the client side, Baird acknowledged headwinds from higher commodity prices weighing on the PC total addressable market (TAM). The firm said that pressure is being at least partially offset by AMD’s anticipated continued share gains in the Client segment. That dynamic aligns with AMD’s recent top-line momentum; the company posted revenue growth of 31.83% over the last twelve months and analysts are modeling further sales increases for the current year.
From a valuation and scale perspective, the note reiterates AMD’s substantial market footprint. The company’s market capitalization stood at $394.17 billion, and the research emphasized the stock’s elevated price-to-earnings multiple, reporting a P/E ratio of 126.66 - a figure that reflects a premium valuation for shareholders to consider.
Baird’s continuation of an Outperform rating follows AMD’s fourth-quarter 2025 earnings release, in which results modestly exceeded expectations. The initial market reaction included an 8% decline in after-hours trading despite the beat. For the upcoming quarter the company provided guidance of $9.8 billion, a figure slightly above the consensus estimate of $9.4 billion.
Investor discussions highlighted by the research and other analysts include concerns tied to AMD’s involvement in the OpenAI project and the possibility of bottlenecks as the MI450 ramp advances. Raymond James specifically flagged investor unease on those fronts, although AMD management has confirmed progress on the initiative.
Other broker commentary in the wake of the results reflected a range of adjustments but a broadly constructive stance on the company’s AI and data center opportunity. Mizuho trimmed its price target to $275 from $285 while keeping an Outperform rating, citing higher expenses. Northland kept an Outperform rating with a $260 target and emphasized AMD’s momentum in both artificial intelligence and personal computer segments. Rosenblatt Securities maintained a Buy rating with a $300 price target and pointed to strong performance driven by data center demand. Evercore ISI raised its price target to $328, reflecting optimism about growth in the data center market.
Baird’s retained Outperform rating underscores the firm’s view that AMD is well positioned within the expanding AI computing landscape, supported by resumed GPU sales, an anticipated Mi450 ramp and accelerating server-CPU demand. At the same time, the firm’s commentary and the reactions of other analysts reflect ongoing investor focus on execution risk, expense trends and valuation.
Summary: Baird reiterated an Outperform rating on AMD with a $300 price target, citing acceleration in AI-related x86 server CPU demand, resumed Mi308 sales, and an on-track Mi450 ramp and OpenAI partnership. AMD’s recent revenue growth and elevated valuation were also highlighted. The company beat Q4 2025 expectations but saw an 8% after-hours sell-off; guidance was set at $9.8 billion for the next quarter.