- AMD stock surged over 14% to a new record Friday after D.A. Davidson upgraded it to Buy with a $375 price target.
- The rally was fueled by strong earnings from competitor Intel, highlighting renewed CPU demand for AI agent workloads.
- Over the past year, AMD stock has soared 195%, boosted by AI demand and a new partnership with the French government.
- The company anticipates revenue from its new MI450 accelerator as early as Q3 and plans to launch its Helios AI rack in late 2026.
Advanced Micro Devices (AMD) stock skyrocketed more than 14% on Friday, reaching a new all-time high in premarket trading after a key analyst upgrade. This surge was ignited by rival Intel‘s strong earnings, which sparked a broader semiconductor rally.
Consequently, D.A. Davidson upgraded AMD shares to Buy from Neutral, raising its price target to $375 from $220. The firm cited significant opportunities in the data center market following Intel‘s performance. “CPU is reinserting itself as an indispensable foundation of the AI era, and the once sleepy CPU market has taken off as agentic workloads shift compute needs beyond GPUs,” analyst Gil Luria wrote.
He added, “We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise.” Meanwhile, the stock has rocketed 69% in the past month amid a broad tech rally. Furthermore, it has seen a staggering 195% increase over the past year.
AMD‘s growth is also driven by strategic developments, including a multi-year collaboration with the French government to bolster its national AI strategy. The company also expects to launch its Helios Artificial Intelligence rack in the latter half of 2026.
CEO Lisa Su expects revenue from the new MI450 accelerator to begin in the third quarter, ramping up afterwards. This could provide a solid revenue stream alongside the company’s already strong recent earnings.
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