** Melius Research upgrades Advanced Micro Devices's AMD.O stocks to "buy," citing stronger demand for graphics processing units (GPUs) in 2026–2028, driven by sustained AI inferencing, boosting appeal to hyperscalers and sovereigns

** Raises PT to $175 from $110; a 36.46 % upside to stock's last close on Friday

**AMD shares up ~1% at $129.33 in premarket trading

** Brokerage sees AMD maintaining a performance edge over Intel INTC.O for at least the next two years while also gaining more recognition and support from top enterprise vendors like Dell DELL.N

** "If AMD were to achieve over 5% of the accelerator market by 2028, we see scenarios with EPS over $9", adds Melius

** Average rating of 52 analysts is "buy"; median PT is $132 — data compiled by LSEG

** As of last close, AMD up ~6.16% YTD

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))