Advanced Micro Devices (NASDAQ: AMD) shares surged more than 8% in pre-market trading on Friday, April 24, extending an already strong weekly rally and pushing the price past $330.
The move reflects a combination of strong chip demand, a more constructive industry outlook, and a bullish analyst revision.
A notable catalyst came in with Intel’sl (NASDAQ: INTC) blow-out quarterly earnings and upbeat guidance, which boosted confidence in the sector.
Notably, Intel reported revenue of $13.6 billion, comfortably above consensus estimates, while adjusted earnings per share of $0.29 far exceeded expectations, helping lift peers, including AMD.
Stifel upgrades AMD stock price target
Stifel was quick to react to the rally, raising its price target from $280 to $320 while maintaining a “Buy” rating. Analyst Ruben Roy argued that rather than viewing the company as a cyclical semiconductor name, it ought to be analyzed as a key artificial intelligence (AI) player.
He tied the upgrade to multi-gigawatt commitments from Meta Platforms (NASDAQ: META) and OpenAI, framing AMD’s growth story around large-scale AI deployments rather than short-term momentum.
According to his note, AMD’s CPUs and GPUs are embedded in servers powering AI data centers, while its Helios rack platform is expected to launch in late 2026. This systems-level approach, Roy claims, is increasingly central to how investors assess the company’s potential.
With pre-market prices now sitting past Stifel’s target, much of the optimism appears justified, and investor focus is increasingly shifting toward AMD’s upcoming earnings report on May 5.
Semiconductor strength pushes AMD further
As mentioned, bullishness is also underpinned by the sector’s overall exceptional results. Indeed, the VanEck Semiconductor ETF (SMH), which tracks 25 chip-related companies, has climbed 27.73% year-to-date, significantly outperforming the broader S&P 500, which is up just 4.07% over the same period.
Taiwan Semiconductor Manufacturing (NYSE: TSM) and ASML (NASDAQ: ASML), the ETF’s largest components, have surged 23% and 32%, respectively. TSMC is especially noteworthy as AMD relies on it for chip production. Accordingly, its outlook is closely tied to sustained demand for advanced semiconductors, particularly those powering AI workloads.
Moreover, while GPUs have been central to the AI boom, demand is increasingly spreading to CPUs as hyperscale companies expand their infrastructure. This shift is driving additional demand for high-performance processors, positioning AMD to potentially benefit further through the aforementioned data center portfolio.
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