Advanced Micro Devices NASDAQ:AMD received a higher price target from Benchmark, which raised its target to $685 from $485 while maintaining a Buy rating, citing recent AI infrastructure developments involving Microsoft NASDAQ:MSFT and Anthropic
Benchmark said Microsoft's expanded Azure roadmap around AMD's Helios platform provides an important near-term validation of the company's AI hardware portfolio, including Helios systems, MI455X accelerators, EPYC Venice processors, Pensando data processing units and ROCm software.
The brokerage also pointed to Anthropic's plan to deploy up to two gigawatts of AMD's MI450-series graphics processors in Helios rack-scale systems beginning in the first half of 2027. It said the agreement could strengthen AMD's position with frontier AI developers while supporting software optimization through Anthropic's Claude models.
Benchmark valued AMD at 36.7 times its fiscal 2028 earnings estimate of $18.67 per share and projected earnings growth of 36% in fiscal 2028. The firm said the combination of Microsoft's cloud deployment and Anthropic's engineering collaboration provides broader validation for AMD's AI strategy than either development would deliver on its own.