AMD: The Full-Stack AI Opportunity

AMD remains a compelling buy, with a new base case price target of $671 (21% upside) and a bullish scenario at $807.87 (45% upside). AMD's flexible, customizable AI infrastructure—spanning GPUs, CPUs, DPUs, networking, and rack-scale systems—positions it as a strong alternative to Nvidia, especially for hyperscalers seeking to avoid vendor lock-in. Rising analyst expectations reflect robust AI-driven growth: Q2 revenue consensus at $11.3B (+47% YoY), EPS at $1.61 (+235% YoY), and EBITDA/FCF estimates up 22–28%. Key risks include competition from Nvidia's integrated platform, custom ASICs, supply chain execution for Helios, and cyclicality in consumer AI-PC markets.