Melius Research sees more room for Advanced Micro Devices to run. Analyst Ben Reitzes upgraded shares of the artificial intelligence play to buy and hiked his price target by $65 to $175. Reitzes’ price target suggests the stock can surge 36.5%. “Many things have changed for the better since the beginning of the year,” Reitzes wrote to clients in a Monday note. “If we are right, the stock has a lot more to go, despite missing the initial move off the bottom.” AMD shares have rallied more than 24% in the second quarter. Reitzes said the surge has been driven by investors starting to price in bigger number tied to graphics processing units for 2026 to 2028. That’s because of growth in inferencing, which the analyst said has been much bigger of a business than initially expected. Investment interest from hyperscalers and sovereigns also bodes well, Reitzes said. “We have increased conviction that investors will gain more confidence in GPU momentum over the next year, which means we could be just in the middle of a historic run in the stock,” he said. To be sure, Reitzes said the stock is considered very volatile. As evidence of this, he mentioned that shares rallied to more than $200 last year only to fall below $100 in 2025. AMD 1Y mountain AMD, 1-year AMD shares rose around 1% in Monday’s premarket following the upgrade.