Analyst Upgrades AMD Stock, Signaling Potential Shift in AI Chip Dominance

Truist analyst William Stein, ranked among the top 3% of Wall Street professionals, has upgraded AMD from Hold to Buy, raising his price target from $173 to $213. This marks a significant shift in sentiment for an analyst who previously viewed Nvidia as the undisputed leader in AI chips.

Stein's upgrade reflects growing confidence in AMD's ability to compete in the datacenter AI semiconductor market. His previous framework emphasized Nvidia's advantages in parallel compute architectures and proprietary software like CUDA, while viewing Broadcom as the primary alternative for large-scale customers.

The revised outlook suggests the AI chip landscape may be entering a more competitive phase. AMD's stock, long considered secondary to Nvidia in this sector, could see a 28% upside if Stein's new assessment proves accurate.