AMD Poised to Overtake Intel in CPU Market, Raymond James Upgrades Stock to ‘Strong Buy’
In a significant vote of confidence for the semiconductor sector, investment firm Raymond James has upgraded Advanced Micro Devices (AMD) from “outperform” to “strong buy,” signaling that the chip designer is on a clear path to challenge Intel’s long-standing dominance in the CPU market.
In a note to clients released Tuesday, Raymond James analyst Simon Leopold raised the firm’s price target on AMD shares to $641 from $565. This adjustment implies a robust 40% upside from Monday’s closing price, highlighting the firm’s optimistic outlook on the company’s trajectory.
A Shifting Competitive Landscape
“AMD offers the strongest combination of direct earnings leverage, datacenter positioning and market-share gains,” Leopold wrote. According to the firm’s projections, AMD’s accelerating growth rate should enable it to overtake Intel as the primary leader in the CPU market by 2027.
The rivalry between the two tech giants has been intensifying as the demand for hardware powering servers, computers, and artificial intelligence-linked data centers skyrockets. Recent data from Mercury Research, as reported by PCMag, underscores this trend: in the second quarter, AMD’s share of the x86 CPU market surpassed 30%, eating into the 69.7% market share currently held by Intel.
The Rise of Agentic AI
Raymond James anticipates the broader CPU market will reach a valuation of approximately $201 billion by 2030. This growth is expected to be fueled by three key pillars: $33.5 billion in conventional datacenter CPUs, $83 billion in AI head-end CPUs, and $85 billion in “agentic” CPUs.
Leopold identified the potential proliferation of agentic AI—autonomous systems capable of performing complex tasks without constant human intervention—as the “principal new growth engine” for the CPU market in the coming years.
Wall Street Sentiment
The move by Raymond James reflects a broader trend of optimism on Wall Street regarding AMD’s potential. According to LSEG data, 45 out of 54 analysts covering the stock currently maintain a “buy” or “strong buy” rating.
While AMD has delivered an impressive performance, rising 113% in 2026 and consistently outperforming the broader market, the stock has experienced a period of consolidation, dipping roughly 2% over the past three months. Following the release of the Raymond James report, investors reacted positively, pushing AMD shares up by more than 2%.
As the battle for silicon supremacy heats up, this semiconductor stock remains a primary focal point for investors betting on the future of the AI-driven economy.
