AMD (AMD, Financial) shares surged nearly 8% Monday after Piper Sandler's Harsh Kumar reiterated his Buy rating and lifted his price target to $140 from $125, citing a “snap back” in the GPU business driven by early pull-ins in the client segment.
Kumar pointed to supply-chain checks showing “starting to see some pull-ins,” suggesting that end-market demand for Radeon GPUs is recovering amid broader AI-driven compute upgrades. Last week's AI event offered further color: AMD unveiled its MI350 series accelerators and teased next-year's rack-scale MI400/450 chips, which Morgan Stanley's Joseph Moore says could be the “longer-term potential inflection” if delivery matches expectations.
Moore maintained an Equal-Weight rating with a $121 target, noting customer feedback from Meta (META, Financial), Oracle (ORCL, Financial), OpenAI, Microsoft (MSFT, Financial), Cohere (COHR, Financial) and HUMAIN was “constructive but not thesis changing,” yet he acknowledged early indications that MI400 performance may rival Nvidia's Vera Rubin line. Why it matters: Renewed GPU momentum could bolster AMD's data-center growth story and chip-maker valuation relative to peers still grappling with inventory corrections.
