Baird raises AMD price target to $625 (25% upside); UBS triples Micron target to $1,625 (80% upside) on AI infrastructure demand.

Baird analyst Tristan Gerra set a street-high $625 price target on AMD, up from $300 ahead of the company's early May earnings report, representing about 25% upside as of May 26. UBS analyst Timothy Arcuri tripled his price target on Micron from $535 to $1,625, representing around 80% upside.

AMD is positioned to benefit from two trends: inference (the step where an AI produces an answer), where demand is less compute-bound and more memory-bound, allowing AMD's chiplet design to pack in more high-bandwidth memory; and agentic AI (AI that manages autonomous agents), where data centers need a 1:1 GPU-to-CPU ratio instead of the 8:1 ratio used in training. Micron benefits from a DRAM (memory chip) undersupply driven by surging demand for HBM, which requires upwards of three times the wafer capacity as ordinary DRAM.

AMD has already signed large GPU deals worth over $100 billion each and expects the agentic AI CPU market to rise to over $120 billion in the next few years. Micron trades at a forward price-to-earnings ratio of just 8.6 times fiscal 2027 analyst estimates, and the big three DRAM makers have started to lock in three to five-year commitments for the first time, providing long-term visibility alongside ASML machine bottlenecks constraining capacity expansion.