AMD Just Got a Potential AI Heavyweight Customer. Here’s The New Price Target

The AI infrastructure land grab has a new potential domino. Jefferies analysts flagged Anthropic as a likely next AMD customer announcement, with the chipmaker’s Advancing AI 2026 event set for July 22 to 23. That joins a customer roster reading like a who’s who of AI, forcing a fresh look at where the stock can go.

Our 24/7 Wall St. price target for AMD (NASDAQ:AMD | AMD Price Prediction) is $562.88, pointing to 13.54% upside from the current $495.76. The recommendation is buy, with confidence at 90%.

24/7 Wall St. Price Target Summary

A Rally That Just Paused

AMD is up 131.49% year to date and 209.06% over the past year, but shares have cooled 11.14% in the past week after touching a 52-week high of $584.73.

Q1 2026 delivered: revenue of $10.25 billion, up 37.9% year over year, with non-GAAP EPS of $1.37 beating the $1.29 consensus. Data Center revenue jumped 57% to $5.78 billion, and management guided Q2 revenue to roughly $11.2 billion, or about 46% growth. The July 22 event has retail excited: Reddit sentiment sits at bullish score of 72.

Why Bulls See a Breakout Ahead

The bull case rests on customer breadth. Microsoft is confirmed as an MI400 series customer, OpenAI has committed to 6 gigawatts of AMD GPUs, Meta is deploying up to 6 GW of Instinct GPUs starting with custom MI450-based silicon, and Oracle is building a 50,000-GPU Helios supercluster.

Add Anthropic and AMD’s estimate that its AI CPU addressable market exceeds $200 billion starts to feel conservative. In the bull scenario, shares could reach $629.03 within 12 months, a 26.88% return. CEO Lisa Su reinforced that trajectory, noting “customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.”

What Could Go Wrong

AMD trades at a trailing P/E of 186 and a forward P/E of 69. Any hiccup at the July event, whether Anthropic deal terms disappoint or MI500 details slip, could reset the multiple.

Export controls remain a live wire, with MI308 restrictions to China driving roughly $440 million in net FY2025 charges. A CTO exercised and sold 6,000 shares at $556.43 on July 15, though those transactions were executed under a Rule 10b5-1 plan. Our bear scenario puts shares at $434.31, a 12.4% drawdown.

How AMD Compares to NVIDIA and Intel

NVIDIA (NASDAQ:NVDA) is the direct benchmark. NVIDIA trades at a P/E of 41, well below AMD’s trailing multiple, backed by Q1 FY2027 revenue of $81.61 billion and Data Center growth of 92% year over year. NVIDIA’s scale makes AMD’s premium multiple defensible only if AMD sustains 45%-plus growth, which the Q2 guide supports.

Intel (NASDAQ:INTC) is the value counterpoint. Intel’s Data Center and AI segment grew 22% to $5.05 billion in Q1 2026, still smaller than AMD’s Data Center line and burdened by a $4.07 billion restructuring charge. The peer set makes our 24/7 Wall St. Price Target reasonable: aggressive versus NVIDIA on multiple, but justified by AMD’s superior GPU customer momentum relative to Intel.

Our View on AMD

The 24/7 Wall St. price target of $562.88 and buy rating reflect an unusual convergence: hyperscaler customer wins, accelerating margins, and a 90% confidence score. The thesis strengthens if the July 22 event confirms the Anthropic deal and MI500 roadmap. The thesis weakens if the announcement lacks financial terms or if China export policy tightens further.

Looking further out, here is where our model projects AMD could trade, assuming Data Center growth normalizes toward the mid-teens by decade’s end.

These projections assume AMD executes on the MI450 and MI500 roadmap. Significant upside could come from sovereign AI wins, while trade restrictions or NVIDIA taking share in the MI400 window would trim the base case.

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