June 24 - Advanced Micro Devices (AMD, Financial) gained more than 5% on Tuesday as analysts turned more bullish on the chipmaker's prospects in the AI hardware race.
The stock's rise follows a series of developments, including AMD's recent AI developer event in San Jose, where the company spotlighted its upcoming MI350 and MI400 chips. CEO Lisa Su said the new chips are expected to outperform Nvidia's (NVDA, Financial) Blackwell series, according to Bloomberg.
Su now estimates the AI accelerator market could exceed her earlier $500 billion projection by 2028. AMD's data center business posted $3.7 billion in Q1 revenue, a 57% jump year over year, and helped push total revenue to $7.44 billion, ahead of expectations.
In recent days, Melius Research upgraded AMD to a “buy” rating, raising its price target to $175 from $110. Analysts cited improving fundamentals and a “sustained demand” for GPUs through 2028, highlighting the upcoming MI400 launch.
Cathie Wood's Ark Investment Management also added to its AMD stake last week, purchasing shares worth more than $36 million across two trading sessions.
The stock is now up about 12% over the past five days, though it remains around 7% higher for the year.
Investor sentiment appears to be shifting as confidence builds around AMD's AI positioning and product roadmap.
