AMD Stock Surges 7% on AI-Driven Analyst Optimism
Advanced Micro Devices (AMD) shares rallied 7.7% to $249.76 after Bernstein and KeyBanc analysts highlighted the chipmaker's accelerating AI capabilities. Bernstein's Stacy Rasgon raised AMD's price target to $225, citing untapped potential in Epyc processor sales and the OpenAI partnership, while maintaining a Market Perform rating.
KeyBanc's John Vinh anticipates AMD will surpass Q4 estimates, fueled by unprecedented demand for Turin server CPUs. Industry whispers suggest AMD's 2026 server CPU inventory may already be depleted—a scenario that could trigger 15% price hikes. The company trades at a 35x forward P/E premium to Nvidia, reflecting baked-in AI expectations.