Raymond James analyst Simon Leopold gave AMD a strong buy rating with a $641 price target, representing about 33% upside. The upgrade is based on expected growth in the server CPU market, which could hit $201 billion by 2030 due to demand for agentic AI. Tech companies are allocating more spending to CPUs because they use less energy for certain AI tasks compared to GPUs. Lisa Su mentioned the ratio of CPUs to GPUs in data centers is moving toward 1-to-1, down from the previous 1-to-4 ratio. AMD is guiding for server revenue to grow over 80% year over year in the second half of 2026. The stock is up 124% year to date and trades at a 116 trailing P/E. It is priced at a premium right now, but their positioning in the data center space looks solid.