TLDR
- Jim Cramer said he’s not betting against AMD, citing great momentum and benefiting from TSMC’s strong earnings
- AMD stock has surged 83% over the past three months after struggling in late 2024 and early 2025
- The rally was driven by strong Q1 2025 earnings, AI infrastructure investments, and a Saudi Arabia contract
- Investor Cash Flow Venue raised AMD to Strong Buy, citing product innovation and potential China market access
- AMD’s MI350 GPUs are shipping now with MI400 expected in 2026, gaining traction with major tech companies
AMD stock has staged a dramatic comeback after months of disappointment. The chipmaker’s shares have jumped 83% over the past three months. This follows a difficult period in late 2024 and early 2025 when the stock tumbled despite strong revenue.
The turnaround came after AMD delivered a standout Q1 2025 earnings report. Continued AI infrastructure investments by hyperscalers also boosted sentiment. A landmark contract in Saudi Arabia added to the positive momentum.
Jim Cramer recently voiced his support for the stock on his show. He said he’s not betting against AMD, pointing to its great momentum. Cramer noted that AMD could benefit from Taiwan Semiconductor’s strong earnings results.
The TV host previously discussed AMD’s position in the AI PC market. He suggested the PC market could be exploding, which would help AMD. Cramer referenced CEO Lisa Su’s ability to develop inference chips.
Growing Product Traction
AMD’s data center strategy appears to be gaining real momentum with major tech players. The company’s Instinct MI350 GPUs are already shipping to customers. The next-generation MI400 is expected to debut in 2026.
One investor who goes by Cash Flow Venue believes AMD’s rally has just begun. The investor points to growing adoption of AMD’s MI series GPUs as evidence. Major tech companies are increasingly using these chips for AI workloads.
Cash Flow Venue raised AMD to a Strong Buy rating. The investor cited robust financials and product innovation as key reasons. The analyst believes AMD doesn’t need to overthrow Nvidia to succeed.
A strong number two position in the market would still mean high demand. It would also ensure growing and profitable sales. Customer relationships built now could drive future growth.
Regulatory Tailwinds
Recent regulatory developments could provide another boost for AMD. The Trump administration has shown willingness to allow advanced AI chip exports to China. This could reopen access to a major market for AMD’s chips.
Specifically, AMD’s MI308 chips could potentially be exported to China again. This would represent a massive market opportunity for the company. China remains a crucial market for semiconductor companies.
The investor remains confident despite AMD’s elevated valuation. The stock currently trades at 36.8 times EV-to-EBITDA. This multiple reflects high expectations for future growth.
Wall Street analysts show mixed sentiment toward the stock. AMD holds a Moderate Buy consensus rating based on 25 Buys and 10 Holds. The average 12-month price target sits at $144.45.
This target price suggests the stock may be overvalued by around 8% at current levels. Some analysts worry that expectations have gotten ahead of fundamentals.
AMD has gained 33% year-to-date as of the latest data. Analysts and investors have become increasingly bullish about the company’s ability to compete with Nvidia. The stock continues to benefit from AI market enthusiasm.
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