Barclays analyst Tom O’Malley raised his $AMD price target to $665 from $500, while keeping an Overweight rating

Barclays believes the market is still underestimating how agentic AI changes demand for server CPUs
“CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI,” O’Malley said. “AMD is best positioned to benefit from this transition.”
Agentic AI requires systems that can coordinate tasks, route requests, call external tools, manage memory, and track multi-step workflows over time. That means the workload depends on the full compute stack, not only the accelerator layer
In that world, CPUs matter much more
Barclays estimates that demand growth from agentic AI could help create a server CPU market approaching $200B by 2030. AMD is seen as the best-positioned company to capture a meaningful share of that opportunity
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Why AMD, not Intel
O’Malley raised Intel’s price target too, but only to $100 from $65, while AMD’s target moved much more aggressively to $665
The reason is Barclays sees AMD as having better products, broader portfolio coverage, and more manufacturing flexibility
AMD is no longer just a CPU company. It has EPYC CPUs, AI accelerators, adaptive chips, networking assets, and a stronger data center platform, important as AI infrastructure is becoming a platform-level market, not a single-chip market
Intel still has assets, but it also carries more execution risk around foundry, product competitiveness, and roadmap credibility