AMD Upgraded to Buy Amid Rising AI-Driven CPU Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2026
0mins
Should l Buy AMD?
Source: seekingalpha
- Rating Upgrade: D.A. Davidson upgraded AMD from Neutral to Buy and raised its price target from $220 to $375, reflecting a structural increase in CPU demand driven by agentic AI, indicating strong growth potential for the company.
- Stock Reaction: Following this announcement, AMD's shares rose over 10% in premarket trading, signaling market optimism about its future performance, especially ahead of its earnings report due on May 5.
- Market Outlook: Analyst Gil Luria noted that while CPUs may become a bottleneck, Intel's strong results suggest that AMD's role in the data center buildout will significantly enhance, indicating substantial growth opportunities for AMD's CPU lineup.
- Pricing Strategy: Luria believes AMD is well-positioned to raise prices significantly across its portfolio to support and expand margins, as demand for server CPUs is expected to outpace supply, further solidifying its market position.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 354.490
Low
210.00
Averages
289.13
High
377.00
Current: 354.490
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Demand Expectations: Analysts indicate that the growth in AI demand is translating into real revenue, leading to upward revisions in earnings estimates for semiconductor companies, particularly as investments in large AI infrastructure projects continue to rise.
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- Growing Demand Signals: Analysts noted that the demand for AI infrastructure is translating into real revenue growth, fostering optimistic projections for chip companies, particularly as capital expenditures for large AI infrastructure projects remain robust.
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