This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Chip designer Advanced Micro Devices, Inc (AMD) held its highly anticipated and much needed conference for the budding artificial intelligence industry yesterday. At the event, AMD upgraded its addressable market estimates for the data center AI acceleration market and introduced a new accelerator product for AI applications. Now, Wall Street analysts are sharing their opinion on the announcements made amidst a flurry of price target upgrades that primarily reflect a growth in the demand for artificial intelligence products.

AMD Blows Wall Street Away With AI Event And Sees Heap of Share Price Target Upgrades

After yesterday's event, more than ten financial analysts upgraded AMD's share price target. These include big ticket firms, including Wells Fargo, Deutsche Bank, Stifel, and Jefferies. However, in this collection of analysts, the highest price target is from Baird, which increased its AMD share price target by a whopping 70% from an earlier $100 to a current $170.

Other notable upgrades include one from Craig-Hallum, which upgraded the target to $158 from $100 and from BMO Capital, whose new estimate is $150. The lowest price target out of this mix is from Deutsche Bank, whose latest price target sits at $110 from an earlier $80.

Along with these upgrades, the financial firms have also shared their opinions in the accompanying analyst notes. Starting from Jefferies, the firm's latest price target for AMD sits at $145, marking a 45% upgrade from an earlier $100 and a roughly $18 upside over the current market price of $127. Jefferies has a Buy rating for AMD's shares, and it believes that the firm can steal market share from Intel's data center and artificial intelligence (DCAI) business next year at a rate of at least a 2% market share gain per quarter.

Moving towards Stifel, the firm upgraded AMD's share price target to $145 from $98. It believes that AMD's Instinct product roadmap upgrade should also have been followed by a customer announcement - a lack of which injects some uncertainty into the roadmap's near term outlook. Despite this, Stifel believes that AMD's product specifications will give it a foothold in the large language model (LLM) and artificial intelligence markets. It also believes that AMD's hardware stack needs to be complemented with a strong software portfolio to extend the market penetration of the products.

Raymond James attempts to estimate the revenue contribution from AMD's latest AI product, the Instinct MI300X accelerator. The MI300X is a product designed to cater to generative artificial intelligence, allowing users to utilize pre-trained AI software to create new content. This deployment product operates on the front end of AI models. As per Raymond James, AMD can capture a couple of hundred million dollars from the product next year. However, over the long term, the financial firm believes that AMD can take as much as 20% of the AI Inferencing market, which could lead to revenue ranging in "multiple" billion dollars.

Finally, KeyBanc generally takes a deeper look at the technical side of things and points out a key caveat from yesterday's event. While it also raised AMD's share price target, to $150 from $110, the firm believes that while AMD was able to showcase performance advantages for AI inferencing, it "was not able to make similar claims in AI training vs. NVDA."Despite this, KeyBanc believes that AMD will still gain meaningful market share in the data center graphics processing unit (GPU) market by being a "second-source alternative" to NVIDIA.