AMD (AMD) Stock Skyrockets as CEO Boldly Claims Their Chips Will Outperform Nvidia’s Flagship GPUs

AMD’s CEO just threw down the gauntlet—claiming their next-gen chips will leave Nvidia’s best in the dust. Investors are buying the hype, sending shares soaring.

Silicon showdown heats up

No specs, no timelines—just pure competitive swagger. Wall Street loves a good underdog story, even if it’s fueled more by ambition than benchmarks.

Meanwhile, quant traders are already algorithmically front-running the eventual ‘sell the news’ moment. Some things never change.

TLDR

• AMD stock surged 6.74% on Tuesday following a new partnership announcement with HCLTech to develop AI and cloud solutions
• Melius Research upgraded AMD to “buy” rating with a price target raised from $110 to $175
• CEO Lisa Su says upcoming MI350 and MI400 chips will outperform Nvidia’s Blackwell series
• Cathie Wood’s Ark Investment purchased over $36 million worth of AMD shares last week
• Ceasefire announcement between Israel and Iran plus potential Fed rate cuts boosted broader market sentiment

AMD shares jumped 6.74% on Tuesday as the semiconductor company benefited from fresh partnership news and growing analyst optimism. The stock closed at $138.31, marking another strong day for the chip maker.

The rally started with news that AMD entered a partnership with HCLTech, an Indian IT consulting company. The deal focuses on developing AI, digital, and cloud solutions through innovation labs and training programs.

These development centers will help enterprises with digital transformation projects. They’re designed to test new technologies and speed up time-to-market for enterprise tools.

Investors see potential for AMD to expand its presence in India’s growing tech market. The partnership could open doors in one of the world’s fastest-growing technology sectors.

Wall Street analysts are also turning more bullish on AMD’s prospects. Melius Research upgraded the stock from “hold” to “buy” this week.

The firm raised its price target to $175 from $110. Analysts cited improving fundamentals and sustained GPU demand through 2028.

AI Chip Competition Heats Up

AMD’s recent AI developer event in San Jose showcased upcoming products that could challenge Nvidia’s dominance. CEO Lisa Su highlighted the company’s MI350 and MI400 chips during the presentation.

Su claims these new chips will outperform Nvidia’s Blackwell series. She now estimates the AI accelerator market could exceed her earlier $500 billion projection by 2028.

The company’s data center business posted strong Q1 results. Revenue hit $3.7 billion, jumping 57% year-over-year.

Total company revenue reached $7.44 billion, beating analyst expectations. The data center segment has become a key growth driver for AMD.

Institutional Support Grows

Cathie Wood’s Ark Investment Management added to its AMD position last week. The firm purchased more than $36 million worth of shares across two trading sessions.

This institutional buying shows growing confidence in AMD’s AI strategy. Wood’s team is known for backing companies with strong technology positions.

Market Conditions Help Rally

Broader market conditions also supported AMD’s rise on Tuesday. A ceasefire announcement between Israel and Iran helped lift investor sentiment.

While both sides have reportedly violated the agreement, the conflict appears to be de-escalating. This reduced geopolitical tension across global markets.

Federal Reserve officials are also warming to potential interest rate cuts. The central bank may consider a cut at next month’s meeting.

Markets had previously assigned low odds to a July rate cut. But Fed members now appear evenly divided on the next policy move.

Lower interest rates WOULD benefit semiconductor stocks like AMD. Cheaper borrowing costs typically boost growth stock valuations.

AMD stock has gained about 12% over the past five trading days. The shares remain up roughly 7% for the year despite earlier volatility.

The stock traded as high as $227 in 2024 before falling to $76 earlier this year. Analysts warn that AMD remains a volatile investment despite recent gains.

AMD’s data center revenue growth of 57% year-over-year demonstrates the company’s progress in capturing AI market share from competitors.