Why AMD Stock Popped on Monday

AMD stock jumped 3.6% on Monday after TD Cowen analyst Joshua Buchalter reiterated a buy rating with a $675 price target. The analyst cited growing adoption of agentic AI and production inference workloads, where AMD's CPUs are better suited than GPUs. AMD recently doubled its total addressable market estimate to $220 billion and predicted CPU sales for AI data centers will rise 70% in 2027. While the stock trades at a high P/E ratio of 156x, its price-to-free cash flow ratio of 102x and PEG ratio of 1.7 suggest it may be cheaper than it appears.