Key Takeaways
- Advanced Micro Devices stock surged approximately 14% Friday following Intel’s impressive Q1 earnings performance
- D.A. Davidson moved AMD to Buy from Neutral, hiking the price target from $220 to $375
- Intel’s quarterly results highlighted accelerating demand for CPUs fueled by agentic AI adoption
- Jefferies analysts suggest AMD is capturing server market share away from Intel
- AMD’s Q1 earnings report is scheduled for May 5
Advanced Micro Devices (AMD) shares experienced a powerful rally Friday, surging approximately 14% to reach the $350 level as investors responded enthusiastically to Intel’s exceptional first-quarter financial performance.
Advanced Micro Devices, Inc., AMD
The positive momentum from Intel’s report extended well beyond Intel itself. The results delivered a clear message to the semiconductor industry: central processing unit demand is accelerating rapidly, positioning AMD as a prime beneficiary of this trend.
D.A. Davidson’s Gil Luria made a significant call on the stock, elevating AMD from Neutral to Buy while dramatically increasing his price objective from $220 to $375—a substantial revision in a single analyst note.
Luria specifically cited Intel’s earnings as the catalyst for his upgraded stance. Intel delivered first-quarter revenue and profit figures that significantly exceeded Wall Street projections, with data center chip revenue showing particular strength.
The underlying catalyst? The rise of AI agents. As artificial intelligence transitions from training massive language models to executing inference workloads—where AI models perform practical, real-world tasks—CPUs have emerged as critical infrastructure components.
“We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise,” Luria noted in his research. He emphasized that the fundamental transition toward agentic AI is generating unprecedented demand levels for server-grade CPUs.
With projected demand set to exceed available supply, Luria believes AMD has pricing power across its CPU product portfolio, which should expand profit margins and strengthen overall earnings potential.
AMD’s Competitive Position Against Intel
While Intel captured Friday’s spotlight with a 24% stock surge on its results, multiple Wall Street analysts believe AMD represents a superior long-term investment opportunity.
Jefferies, which elevated its Intel price target Thursday evening, indicated that AMD remains its top pick in the space. The firm maintains a Buy rating with a $300 target on AMD, while keeping Intel rated at Hold.
“INTC noted double-digit server unit growth with momentum extending into 2027, but AMD likely sees even better growth,” Jefferies analysts wrote. The firm also highlighted AMD’s forthcoming Venice processors, anticipated in late 2026 or early 2027, as an important growth driver.
Morgan Stanley’s Joseph Moore provided a more cautious perspective. Maintaining Equal Weight ratings on both companies, Moore suggested Intel’s earnings outperformance stemmed from supply limitations rather than Intel capturing market share from AMD.
According to Moore, the CPU “music is likely to keep playing for a while, as there is no indication that supply catches up to demand.”
Semiconductor Sector Rally Continues
AMD’s rally wasn’t an isolated event. Arm Holdings (ARM) also climbed nearly 15% Friday. Arm recently unveiled intentions to develop its own CPU products, positioning itself as a more direct competitor to both Intel and AMD.
The PHLX Semiconductor Index advanced 4.5% during Friday’s session, marking its 18th consecutive day of gains. The benchmark index has climbed 43% year-to-date in 2026 and shows gains exceeding 140% over the trailing twelve months.
AMD shares reached an intraday peak of $352.99 Friday, marking the stock’s highest level in more than a year. The 52-week trading range extends from $91.87 to $352.99.
AMD is scheduled to announce its first-quarter financial results on May 5, followed by a conference call starting at 5:00 p.m. ET the same day.
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