{"slug": "why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock", "title": "Why Nvidia rival AMD may see a 40% rip in its stock", "summary": "Raymond James analyst Simon Leopold upgraded AMD to Strong Buy from Outperform and raised his price target to $641 from $565, implying nearly 40% upside, citing AMD's AI chip strength and a projected 44% CAGR in the server CPU market to $201 billion by 2030. AMD's stock rose 5% in response, and the company recently reported record Q2 revenue of $11.5 billion, up 50% year over year, with data center revenue doubling to $6.7 billion, and announced major AI chip deals with Microsoft and Anthropic.", "body_md": "A screaming buying opportunity may exist in AMD ([AMD](https://finance.yahoo.com/quote/AMD/)) after a post-earnings sell-off earlier this month.\n\nRaymond James analyst Simon Leopold upgraded his rating on AMD to Strong Buy from Outperform in a new note on Tuesday. He lifted his price target to $641 from $565, which assumes neatly 40% upside from current price levels.\n\nThe new price target puts Leopold above the average price target of his peers at $613, per [Yahoo Finance AlphaSpace](https://finance.yahoo.com/about/promos/gold/alphaspace?100003557) data. About 72% of Wall Street analysts that cover AMD rate the stock a Strong Buy or Buy.\n\nAMD stock rose 5% in afternoon trading in response.\n\nLeopold thinks AMD, with its powerful AI chips, will be a key player in the agent-driven workforce. Moreover, he sees the server central processing unit (CPU) market increasing at a 44% five-year compound annual growth rate to about $201 billion by 2030.\n\n\"AMD offers the strongest combination of direct earnings leverage, datacenter positioning and market-share gains,\" Leopold said.\n\nThe chipmaker has had a series of wins this summer.\n\nAMD beat Wall Street expectations across the board for the second quarter earlier this month, posting record non-GAAP earnings per share of $1.66 versus consensus estimates of $1.61. Total revenue surged 50% year over year to a record $11.5 billion, clearing analyst projections of approximately $11.34 billion.\n\nThe strong top- and bottom-line performance was fueled by the company's Data Center segment. Revenue more than doubled year over year to $6.7 billion behind robust demand for EPYC server CPUs and Instinct AI accelerators.\n\nAMD projected second-half 2026 server CPU revenue to grow 80% year over year and 70% in 2027. It expects data center revenues to more than double in 2027, with AI graphics processing units (GPUs) growing well over 100%.\n\nAMD also unveiled its next-generation AI chips, headlined by the Instinct MI450 Series GPUs and the 6th Gen EPYC Venice CPUs. The new chips are designed to power AMD's [new Helios rack-scale AI systems](https://finance.yahoo.com/technology/article/amd-launches-helios-system-in-direct-challenge-to-nvidias-ai-dominance-183000104.html), which combine GPUs, CPUs, networking, and software into an integrated platform for training and running large AI models.\n\nThe product announcement came alongside two important new deals.\n\nAMD said Microsoft ([MSFT](https://finance.yahoo.com/quote/MSFT/)) will deploy Helios across Azure AI services beginning in the second half of 2026.\n\nIt also announced a major tie-up with Anthropic ([ANTH.PVT](https://finance.yahoo.com/quote/ANTH.PVT/)) that significantly expands its push to challenge rival Nvidia in the AI infrastructure market.\n\nAnthropic plans to deploy up to 2 gigawatts of the Instinct MI450 GPUs in its Helios system beginning in the first half of 2027 — a deal that could be worth tens of billions of dollars over time. AMD also committed to invest up to $5 billion in Anthropic, marking one of the chipmaker's largest strategic investments ever.", "url": "https://wpnews.pro/news/why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock", "canonical_source": "https://ca.finance.yahoo.com/news/why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock-164720676.html", "published_at": "2026-08-25 16:47:20+00:00", "updated_at": "2026-08-25 17:13:42.937358+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure", "ai-products"], "entities": ["AMD", "Raymond James", "Simon Leopold", "Microsoft", "Anthropic", "Instinct MI450", "EPYC Venice"], "alternates": {"html": "https://wpnews.pro/news/why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock", "markdown": "https://wpnews.pro/news/why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock.md", "text": "https://wpnews.pro/news/why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock.txt", "jsonld": "https://wpnews.pro/news/why-nvidia-rival-amd-may-see-a-40-rip-in-its-stock.jsonld"}}