Barclays resets AMD stock price target

The AI commercialized has spent 2 years being astir wholly astir GPUs. Nvidia dominates that conversation, and astir of Wall Street has been blessed to fto it. Tom O'Malley astatine Barclays conscionable said that framing whitethorn beryllium missing the adjacent large determination successful semiconductors.

His statement centers connected a azygous displacement successful however AI workloads are evolving , and it points straight astatine AMD.

What Barclays changed and what O'Malley is seeing

Tom O'Malley, a five-star expert astatine Barclays ranked successful the apical 1% of each Wall Street banal experts, raised his terms people connected Advanced Micro Devices (AMD) to $665 from $500 connected June 1, maintaining his Overweight rating, according to TipRanks. O'Malley has a 74% occurrence complaint and an mean instrumentality of 105.6% implicit the past 2 years.

The rise implies astir 29% upside from AMD's terms of astir $516 astatine the clip of the note. AMD has already tripled implicit the past 12 months and gained 109% year-to-date, yet O'Malley believes the marketplace is inactive not afloat pricing successful what agentic AI means for CPU demand.

The agentic AI thesis and wherefore CPUs substance much than investors think

"CPU-to-GPU ratios are narrowing arsenic CPU request reaches caller levels successful the rapidly expanding satellite of agentic AI," O'Malley said. "AMD is champion positioned to payment from this transition." That is the halfway of the note, and it represents a meaningful departure from the mode the AI spot communicative has been told for the past 2 years.

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The displacement O'Malley is describing is structural. Early AI workloads were mostly astir grooming ample models, a occupation that heavy favors GPUs. Agentic AI is different.

It involves systems that coordinate tasks, way requests, telephone outer tools, and way multi-step workflows implicit extended periods. That behaviour demands much from the broader compute stack, not conscionable the accelerator layer, according to TipRanks.

O'Malley estimates that request maturation from agentic AI could assistance make a server CPU marketplace approaching $200 cardinal by 2030. AMD, successful his view, is amended positioned than immoderate rival to seizure a meaningful stock of that opportunity.

Why AMD and not Intel

The enactment is arsenic overmuch astir comparative positioning arsenic it is astir AMD successful isolation. O'Malley besides raised his Intel terms people connected June 1, but lone to $100 from $65 , a people that inactive sits beneath Intel's existent stock price. The asymmetry is deliberate.

O'Malley cited AMD's superior products, broader portfolio coverage, and greater manufacturing flexibility arsenic the reasons it is amended placed to triumph arsenic the CPU marketplace expands. AMD CEO Lisa Su reinforced the underlying request inclination connected the company's Q1 2026 net call. "We are seeing beardown momentum arsenic inferencing and agentic AI thrust expanding request for high-performance CPUs and accelerators," she said, according to 247 Wall St.