TLDR
- Melius Research upgraded AMD stock to Buy from Hold with price target raised to $175 from $110
- AMD stock has gained 11.5% in the past five days and is up 7.3% year-to-date
- CEO Lisa Su claims MI350 series chips are faster than Nvidia’s competing products
- Cathie Wood’s Ark Investment bought nearly $37 million worth of AMD shares recently
- AMD partnered with Saudi startup Humain for $10 billion AI infrastructure project over five years
AMD stock has caught the attention of Wall Street analysts after months of uncertainty. The chipmaker’s shares have been on a rollercoaster ride, but recent developments suggest a potential turnaround.
Melius Research analyst Ben Reitzes made waves by upgrading AMD stock to Buy from Hold. He raised his price target to $175 from $110, suggesting a 35% upside from current levels.
The analyst believes AMD has moved past early rebound stages. He sees the company now sitting “in the middle” of a broader rally with more gains ahead.
AMD’s stock price has been volatile over the past year. Shares hit $211 in 2024 before tumbling below $80 in early 2025. The stock closed at $129.58 and has gained 7.3% year-to-date.
Recent performance shows momentum building. AMD shares jumped 11.5% in just five trading days leading up to the analyst upgrade.
Growing AI Chip Demand
The upgrade comes as AMD gains ground in the AI chip market. Reitzes pointed to strong interest from cloud providers and government-backed firms in AMD’s MI300 and MI350 chips.
CEO Lisa Su made headlines at the company’s June 12 developer conference. She claimed AMD’s MI350 series chips are faster than Nvidia’s competing Blackwell products.
Su also raised her market outlook during the event. She previously predicted $500 billion in AI accelerator market revenue by 2028 but now sees it topping that figure.
The analyst believes AI inferencing demand is proving “much bigger” than expected. AMD’s chips are becoming more attractive to high-end buyers thanks to stronger memory and better software.
The upcoming MI400 line is already drawing early attention from potential customers. Melius expects AMD’s GPU sales to ramp up significantly from 2026 to 2028.
Strategic Partnerships and Investments
AMD has secured several key partnerships that could drive future growth. The company announced a deal with Saudi Arabian AI startup Humain to build $10 billion in AI computing infrastructure over five years.
.@HUMAINAI CEO, Tareq Amin, shared the stage with Dr. Lisa Su to discuss the landmark agreement with AMD to build open, scalable, resilient and cost-efficient AI infrastructure, leveraging the full spectrum of computing platforms only AMD can provide.
“Our commitment for all AI… pic.twitter.com/tqqKprDyBr
— AMD (@AMD) June 21, 2025
Other partnerships include collaborations with Amazon, Meta, and OpenAI. These relationships could help AMD gain market share in the competitive AI chip space.
The Middle East partnership with Humain stands out as particularly promising. Melius believes AMD’s market share in the region may surpass its global share due to this investment.
Cathie Wood Bets Big on AMD
Ark Investment Management’s Cathie Wood has been rebuilding her AMD position. She bought 247,753 shares worth $32.1 million on June 20 and another 37,377 shares valued at $4.8 million on June 17.
Cathie Wood’s Ark Invest made several high-profile portfolio changes Friday, signaling a shift toward tech and hospitality plays while exiting some former bets.
Ark’s ARKK ETF bought 162,255 shares of Airbnb, worth about $21.7 million, highlighting renewed confidence in the… pic.twitter.com/MwphJugUT4
— Benzinga (@Benzinga) June 23, 2025
Wood previously sold about 121,000 AMD shares in early 2024 when the stock was near its peak. She’s been steadily rebuilding her position as the stock price dropped.
Her recent purchases total nearly $37 million, showing confidence in AMD’s recovery prospects.
Strong Financial Performance
AMD reported better-than-expected first-quarter results in May. The company posted adjusted earnings of 96 cents per share on $7.44 billion in revenue.
These numbers beat Wall Street expectations of 94 cents per share and $7.13 billion in revenue. The data center business generated $3.7 billion in sales, up 57% from the previous year.
Melius has raised its earnings estimates through 2027. The firm expects earnings per share to reach $3.88 this year, rising to $5.77 in 2026 and $7.08 in 2027.
If AMD captures more than 5% of the global AI chip market, the upside could be even higher according to the analyst.
Piper Sandler also raised its price target for AMD to $140 from $125 last week, citing higher demand for the company’s GPUs.
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