- AMD stock surged to an all-time high of $561 in pre-market trading after announcing a multi-billion deal with AI firm Anthropic.
- The agreement includes tens of billions of dollars for AI servers and a $5 billion investment from AMD into Anthropic.
- Wall Street analysts have raised price targets for AMD to as high as $725, with expectations of strong Q2 revenue near $11.3 billion.
- The rise of agentic AI, which relies more on CPUs, could further benefit AMD as it manufactures both GPUs and CPUs.
Advanced Micro Devices, Inc (AMD) stock hit an all-time high of $561 in the pre-market hours on Wednesday, fueled by a landmark deal with AI startup Anthropic. According to a report by the Wall Street Journal, the two companies signed a deal for “tens of billions of dollars’ worth of artificial-intelligence servers.” Meanwhile, the chip maker will invest $5 billion in Anthropic.
Consequently, AMD stock price has seen significant gains over the last year, emerging as a major beneficiary of the AI boom. The company is expected to report stellar Q2 earnings in early August, with Wall Street estimating revenue of roughly $11.3 billion—a near 47% year-over-year increase.
Analysts have grown increasingly bullish, with Bank of America reiterating a $620 price target, while UBS, Cantor Fitzgerald, and KeyBanc raised targets to $700 and $725, respectively. The coming shift toward agentic AI, which depends more on CPU power, could further strengthen AMD‘s position as it produces both GPUs and CPUs. Given these developments, the stock’s upward momentum appears likely to continue in the weeks ahead.
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