Chipmaker Advanced Micro Devices (AMD) saw its stock surge over 14% on Friday, reaching a new record in premarket trading. The rally followed an upgraded forecast and Buy rating from D.A. Davidson, which cited opportunities in the data center market following rival Intel‘s strong earnings. Analyst Gil Luria noted the CPU market has taken off as agentic AI workloads shift compute needs, viewing Intel’s results as a precursor for AMD.
Advanced Micro Devices stock boomed over 14% on Friday, hitting a new record during premarket trading. The move followed a forecast revision by D.A. Davidson, which upgraded shares to a Buy rating from Neutral.
Rival chipmaker Intel posted strong earnings, which sparked a rally for the semiconductor industry. These results highlight the pivotal role central processing units play amid growing demand for AI agents.
D.A. Davidson upgraded AMD to Buy with a $375 target from $220, citing opportunities in the data center market. At press time, AMD trades at $347 per share.
“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,” Davidson analyst Gil Luria wrote. “We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise,” he added.
In the past month, AMD stock has rocketed 69%, with the US tech stock market rallying. The stock has seen a 195% increase over the past year, driven by several key developments and partnerships.
AMD has entered a multi-year collaboration with the French government to bolster its national AI strategy. The company’s Helios AI rack is expected to launch in the latter half of 2026, designed for AI workloads with AMD’s latest chips.
