RBC Capital analyst Srini Pajjuri raised the price target on AMD (NASDAQ: AMD) to $400.00 (from $325.00) while maintaining a Sector Perform rating.

The analyst comments "AMD's results and outlook were both solid and generally consistent with our preview for 4-6% beat/raise. As expected, server CPU revenue was particularly strong (up 50%/70%+ y/y growth in 1Q/2Q) driven by Agentic AI. Management now sees the server CPU market growing at >35% CAGR to $120B TAM by 2030, double the prior projection. AI GPU business is generally tracking in line, although management sounded incrementally positive about 2027. While we remain positive on CPU growth , intensifying competition from in-house ARM-based solutions presents LT risk. At 35x CY27EPS, we believe further outperformance will largely be a function of strong MI455/Helios ramps. We view component supply, rack-scale execution, and competition as potential challenges and would wait for evidence of Helios volume ramps before getting more constructive."