Advanced Micro Devices shares surged in early trading after two major Wall Street firms raised their price targets on the semiconductor company.
AMD stock initially climbed 4.5% and reached a new intraday record as investors reacted to stronger expectations for its server processors, data center GPUs and artificial intelligence business.
Wells Fargo Raises AMD Price Target to $615
Wells Fargo analyst Aaron Rakers increased his AMD price target to $615 from $505.
He also maintained an Overweight rating on the stock, pointing to faster server CPU growth and strong revenue expectations for AMD’s data center graphics processors.
Rakers expects AMD’s server CPU revenue to grow by approximately 68% year over year in 2026.
He then forecasts growth of around 28% in 2027 and 22% in 2028.
His earnings estimates for 2027 and 2028 are also significantly higher than the current Wall Street consensus.
Cantor Fitzgerald Sets $700 AMD Price Target
Cantor Fitzgerald added further momentum by raising its AMD price target to $700 from $500.
The firm kept its Overweight rating and argued that AMD currently has the strongest compute momentum among major semiconductor companies.
The two analyst upgrades helped push AMD shares to a fresh intraday high of $566.20.
AI Chip Demand Supports AMD Growth Outlook
Citi also recently updated its rankings for artificial intelligence semiconductor companies.
The bank said demand for AI computing power remains greater than available supply.
However, shortages of DRAM memory remain one of the main constraints on industry growth.
This imbalance could benefit AMD as companies continue investing heavily in AI servers, processors and data center infrastructure.
Technology Stocks Provide a Supportive Backdrop
The wider stock market also helped support AMD’s rally.
The Nasdaq Composite rose more than 1%, while the S&P 500 gained approximately 0.5% during the session.
Other semiconductor stocks also traded higher as investors continued to favor companies connected to artificial intelligence infrastructure.
AMD Stock Extends Its Powerful Rally
AMD’s latest move is particularly notable because the stock has already recorded significant gains over the past year.
Its 52-week low stands at $133.50, compared with the latest intraday record above $566.
The sharp rise reflects growing investor confidence in AMD’s ability to win market share across server CPUs, data center GPUs and AI computing products.
Analyst Optimism Pushes AMD Into Record Territory
The combination of aggressive analyst upgrades, improving sentiment toward technology stocks and strong demand for AI infrastructure helped drive AMD stock to a new all-time high.
Investors appear increasingly confident that AMD’s artificial intelligence growth cycle still has room to continue.
However, the stock’s strong performance also means future earnings and revenue growth will need to justify its increasingly high valuation.
