Advanced Micro Devices (NASDAQ: AMD) is gearing up for a big moment, with its Advancing AI Event set to unfold on Thursday, October 10, in San Francisco.
It could be just the catalyst the chip giant needs to push shares higher.
Cantor’s C.J. Muse, a top-ranked analyst in the industry, is confident in AMD’s prospects, reaffirming an Overweight rating with a $180 price target on October 8.
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Muse expects the event to bring exciting announcements, including the official launch of Turin data center CPUs, MI325X data center accelerators, and AI PCs—likely under the Strix PRO brand. An AI total addressable market (TAM) update, potentially extending projections into 2030, might also be on the table.
Muse sees AMD’s “compelling AI-driven portfolio” as a solid contender, poised to continue gaining ground in the CPU and GPU data center space.
AMD looks to carve out AI market share
With Nvidia (NASDAQ: NVDA) dominating the AI landscape—holding 80%-85% market share and a 15-year software lead—AMD has its work cut out. The company is aiming to squeeze in between Nvidia’s commanding presence and the roughly 10% share held by custom ASICs from Broadcom (AVGO) and Marvell Technology (NASDAQ: MRVL).
Still, if Advanced Micro Devices can secure a 10% slice of the AI market by 2026, the upside could be substantial.
Bank of America’s Vivek Arya estimates that would add around $5 billion in sales, boosting AMD’s revenue above $17 billion, with earnings per share potentially hitting $8-$9, well above current projections of $7.37.
AMD event timing raises eyebrows
AMD’s decision to hold the AI event just weeks before its earnings report is an intriguing move, breaking from the typical quiet period. Bank of America isn’t changing its tune, on October 3 BofA maintained a Buy rating with the $180 price target intact.
The firm sees Advanced Micro Devices well-positioned to grab share from Intel, which continues to struggle with restructuring, and capitalize on the expanding AI market as Nvidia pushes the boundaries of what’s possible.
Advanced Micro Devices push for AI recognition
Last month, Wells Fargo doubled down on its bullish outlook, reiterating an Overweight rating and a $205 price target after AMD announced Oracle Cloud Infrastructure (ORCL) would deploy its MI300X GPUs in its latest Compute Supercluster.
This “incremental positive” could foreshadow further emphasis on AMD’s AI capabilities at the October 10 event.
With analysts upbeat and expectations high, all eyes will be on AMD today to see if it can step up and make its mark in the AI race.
AMD shares closed at $171.02 on October 9 and edged up to $171.64 (+0.36%) in pre-market trading on October 10.
