TLDR
- AMD stock surged over 10% in premarket trading on Friday, April 24, hitting record highs above $340
- Intel’s blowout Q1 results — $13.6B revenue, $0.29 EPS — boosted confidence across the chip sector
- D.A. Davidson upgraded AMD to Buy, raising its price target from $220 to $375
- Stifel also raised its target from $280 to $320, keeping a Buy rating, citing AMD’s AI data center role
- AMD reports earnings on May 5; analysts expect meaningful upside to estimates
AMD stock jumped more than 10% in premarket trading on Friday, April 24, reaching record highs above $340. The move came after Intel posted a strong Q1 earnings beat and two analyst firms upgraded AMD within hours of each other.
Advanced Micro Devices, Inc., AMD
Intel reported Q1 revenue of $13.6 billion, well above consensus estimates. Adjusted EPS came in at $0.29, far ahead of expectations. That result triggered a wave of optimism across the semiconductor space, with AMD among the biggest beneficiaries.
D.A. Davidson analyst Gil Luria upgraded AMD to Buy from Neutral and lifted his price target from $220 to $375. He cited a “structural increase” in CPU demand and “much improved” visibility into AMD’s role in the data center buildout.
“CPU is reinserting itself as an indispensable foundation of the AI era,” Luria wrote. He called Intel’s results “a precursor for a huge step-up for AMD’s CPU franchise.”
Stifel analyst Ruben Roy also raised his price target on AMD, moving it from $280 to $320 while keeping a Buy rating. Roy argued AMD should be viewed as a core AI player rather than a traditional cyclical semiconductor name.
He pointed to multi-gigawatt commitments from Meta Platforms and OpenAI as proof of the scale of AI infrastructure investment AMD is plugged into.
CPU Demand Takes Center Stage
For much of the AI boom, GPUs grabbed the headlines. But the Intel results put CPUs back in focus. As agentic AI workloads grow — software bots that act on users’ behalf — compute needs are spreading beyond GPUs into high-performance processors.
AMD’s CPUs and GPUs are embedded in servers across AI data centers. Its Helios rack platform is also expected to launch in late 2026, adding another layer to its data center portfolio.
Roy’s note framed this systems-level approach as increasingly central to how investors should assess AMD’s growth potential.
With premarket prices already past Stifel’s $320 target, much of the optimism was already priced in before the open. Investor attention is now shifting toward AMD’s own earnings report, due May 5.
Sector-Wide Momentum
AMD isn’t moving alone. The VanEck Semiconductor ETF (SMH) has climbed 27.73% year-to-date, well ahead of the S&P 500’s 4.07% gain over the same period.
Taiwan Semiconductor Manufacturing (TSM) is up 23% this year. ASML has gained 32%. Both are among SMH’s largest holdings.
TSMC is especially relevant here — AMD relies on it for chip production. Sustained demand for advanced semiconductors, particularly those tied to AI workloads, directly supports AMD’s supply chain.
AMD stock was sitting at all-time highs heading into Friday’s session, with the sector leading the broader market to new records earlier in the week.
DA Davidson’s $375 target implies further upside even from current elevated levels. The May 5 earnings report will be the next major test.
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