Analyst Ratings January 26, 2026

Piper Sandler Lifts AMD Target to $300 Citing AI-Driven Server Demand

Analysts foresee near-term upside and a clearer growth inflection around mid-2026 as Helios rack ramp and OpenAI work converge

By Sofia Navarro AMD
Piper Sandler Lifts AMD Target to $300 Citing AI-Driven Server Demand
AMD

Piper Sandler raised its price objective for AMD to $300 from $280 and kept an Overweight rating, projecting revenue upside and modest EPS beats in upcoming quarters. Other firms including KeyBanc and Bernstein have also updated views, while corporate developments and supplier expectations underscore the market's attention on AMD's server and AI efforts.

Key Points

  • Piper Sandler raised AMD's price target to $300 from $280 and maintained an Overweight rating, forecasting about $200 million revenue upside for December 2025 and at least $0.02 EPS upside versus consensus - impacts semiconductor and server markets.
  • KeyBanc kept a $270 target and Overweight rating, expecting strong server CPU demand through 2026 and better-than-consensus fourth-quarter 2025 results driven by Turin processors - impacts server OEMs and data center operators.
  • Bernstein raised its AMD target to $225 on AI progress but noted OpenAI is the only major announced Helios customer; supply-chain and supplier notes, such as BofA's adjustment for Sanmina, reflect revenue linkage to AMD rack builds - impacts manufacturing and contract manufacturers.

Piper Sandler raised its price target on Advanced Micro Devices to $300 from $280 and reiterated an Overweight rating on the stock. The firm quantified potential near-term gains, forecasting roughly $200 million of revenue upside for AMD in the December 2025 quarter, with scope to exceed that amount, and at least $0.02 of earnings-per-share upside relative to consensus.

For the March quarter, Piper Sandler also sees room for upside but cautions that gains are likely to be modest - a view the firm attributes to the seasonal cadence of client, gaming and enterprise EPYC CPU demand. Looking further ahead, the research house expects AMD's stock performance and underlying metrics to become more pronounced in mid-2026 as the company scales its Helios rack and follows through on its contract with OpenAI.

Between now and midyear, Piper Sandler anticipates announcements from OpenAI partners and other customers confirming purchase commitments for AMD products. That pipeline of potential orders is a central element of the firm's constructive outlook heading into the medium term.


Other sell-side commentary has trended broadly favorable. KeyBanc reiterated an Overweight rating and retained a $270 price target, citing sustained server-CPU demand through 2026. KeyBanc expects AMD to deliver results that beat consensus in its upcoming fourth-quarter 2025 earnings report, driven by demand for the company's latest Turin processors.

Bernstein raised its price target for AMD to $225, stating the change reflects progress in AMD's artificial intelligence initiatives. Bernstein's note also pointed out that OpenAI remains the only major announced customer for AMD's Helios chips.

On the corporate governance front, AMD appointed KC McClure, the former CFO of Accenture, to its board of directors. McClure's background includes extensive finance and accounting leadership and prior work as a senior advisor to Accenture.

Market participants tracking the AMD supply chain have also adjusted their outlooks. BofA Securities revised its price target for Sanmina-SCI Corp. to $190 while maintaining a Neutral rating. Analysts at BofA cited expectations tied to revenue generation from AMD rack builds as they assess Sanmina ahead of the company's fiscal first-quarter 2026 earnings report.

Separately, Aletheia released a note suggesting that current forecasts for AMD's server CPU business may be conservative, projecting a sizable revenue uptick for fiscal 2026.


Taken together, the recent analyst moves, corporate board addition and supplier-focused adjustments paint a picture of growing market attention on AMD's server CPU and AI hardware efforts. Near-term results still carry typical seasonality and execution uncertainties, but several firms expect visible demand signals to emerge before mid-2026 as Helios and associated customer commitments progress.

Risks

  • Customer concentration - Bernstein notes OpenAI remains the only major announced customer for Helios chips, which creates dependency risks for AMD's Helios rollout - impacts AI infrastructure and cloud providers.
  • Seasonal demand patterns - Piper Sandler expects only modest upside in the March quarter due to seasonal variations in client, gaming and enterprise EPYC CPU business - impacts semiconductor cyclical performance and near-term revenue predictability.
  • Execution and supplier revenue dependency - BofA's focus on Sanmina's revenue from AMD rack builds highlights reliance on supplier execution and contract fulfillment ahead of fiscal reporting - impacts supply-chain and electronics manufacturing sectors.

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