Key Highlights
- Advanced Micro Devices shares jumped over 10% during premarket hours on April 24, climbing to unprecedented levels beyond $340
- Intel’s impressive first-quarter performance — delivering $13.6B in revenue and $0.29 earnings per share — sparked renewed optimism throughout the semiconductor industry
- D.A. Davidson elevated AMD to a Buy recommendation, increasing its price objective from $220 straight to $375
- Stifel elevated its price objective from $280 to $320 while maintaining its Buy recommendation, emphasizing AMD’s strategic position in AI data centers
- AMD’s quarterly earnings announcement scheduled for May 5 has analysts anticipating results that could significantly exceed current projections
Shares of Advanced Micro Devices climbed more than 10% during premarket sessions on April 24, pushing the stock to unprecedented territory above the $340 mark. This surge followed Intel’s robust first-quarter earnings performance and a pair of analyst upgrades released in quick succession.
Advanced Micro Devices, Inc., AMD
Intel delivered first-quarter revenue totaling $13.6 billion, significantly surpassing Wall Street’s consensus projections. The company’s adjusted earnings per share reached $0.29, comfortably beating analyst forecasts. These impressive figures ignited a broad rally throughout the semiconductor industry, with AMD emerging as one of the primary winners.
Gil Luria, analyst at D.A. Davidson, elevated AMD’s rating from Neutral to Buy while simultaneously raising his price objective from $220 to an ambitious $375. His rationale centered on a “structural increase” in central processing unit demand and significantly “improved” clarity regarding AMD’s strategic importance in the expanding data center landscape.
“The CPU is reclaiming its position as an essential cornerstone of the artificial intelligence revolution,” Luria explained in his research note. He characterized Intel’s quarterly performance as “a signal of a substantial acceleration for AMD’s CPU business.”
Stifel’s Ruben Roy similarly increased his price target for AMD, adjusting it from $280 to $320 while reaffirming his Buy stance. Roy contended that investors should recognize AMD as a fundamental artificial intelligence company rather than categorizing it as a conventional cyclical chip manufacturer.
He highlighted massive multi-gigawatt infrastructure commitments from companies like Meta Platforms and OpenAI as evidence of the enormous scale of AI infrastructure investments that AMD is positioned to capture.
Processors Reclaim the Spotlight
Throughout much of the artificial intelligence expansion, graphics processing units dominated investor attention. However, Intel’s quarterly results have redirected focus back to central processing units. As agentic artificial intelligence applications proliferate — autonomous software systems that execute tasks on behalf of users — computational requirements are expanding beyond GPUs to encompass high-performance processors.
AMD’s portfolio of CPUs and GPUs has become deeply integrated into server infrastructure throughout AI-focused data centers. The company’s anticipated Helios rack platform, expected to debut in late 2026, will add another dimension to its data center product lineup.
Roy’s analysis positioned this comprehensive systems-level strategy as increasingly fundamental to evaluating AMD’s expansion trajectory.
With premarket pricing already surpassing Stifel’s $320 target, considerable optimism had been incorporated into valuations before the trading day commenced. Market participants are now focusing their attention on AMD’s upcoming quarterly results, scheduled for release on May 5.
Industry-Wide Rally Gains Steam
AMD’s ascent reflects broader momentum across the semiconductor landscape. The VanEck Semiconductor ETF (SMH) has advanced 27.73% year-to-date, substantially outperforming the S&P 500’s 4.07% increase over the identical timeframe.
Taiwan Semiconductor Manufacturing (TSM) has appreciated 23% this year. ASML has registered gains of 32%. Both companies represent significant positions within SMH’s portfolio.
TSMC holds particular relevance for AMD — the company depends on TSMC for manufacturing its chips. Continued robust demand for cutting-edge semiconductors, especially those powering AI applications, provides direct support for AMD’s production ecosystem.
AMD shares were already trading at record levels entering Friday’s session, with the semiconductor sector propelling the broader market to fresh peaks earlier in the week.
DA Davidson’s $375 price objective suggests substantial additional appreciation potential even from current elevated valuations. The May 5 earnings disclosure will serve as the next critical catalyst.
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