Advanced Micro Devices (AMD) Stock Soars to Record Heights Following Intel's Stellar Earnings

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Advanced Micro Devices shares climbed more than 10% during Friday’s premarket session on April 24, breaking past $340 to establish new record territory
Intel delivered exceptional first-quarter performance with revenue reaching $13.6B and earnings per share of $0.29, sparking widespread optimism throughout the semiconductor industry
D.A. Davidson elevated AMD to a Buy rating while dramatically increasing its price objective from $220 to $375
Stifel maintained its Buy recommendation and boosted its price target from $280 to $320, emphasizing AMD’s critical position in AI data center infrastructure
The company’s upcoming earnings announcement scheduled for May 5 has analysts anticipating results that could significantly exceed current projections

Shares of Advanced Micro Devices skyrocketed beyond 10% during premarket hours on Friday, April 24, climbing past the $340 threshold to establish fresh all-time peaks. This explosive movement followed Intel’s impressive first-quarter financial performance and simultaneous upgrades from two prominent Wall Street analyst firms.

Advanced Micro Devices, Inc., AMD

Intel delivered first-quarter revenue totaling $13.6 billion, substantially surpassing analyst consensus projections. The company’s adjusted earnings per share registered at $0.29, significantly exceeding Wall Street expectations. This strong performance catalyzed a broad-based rally throughout the semiconductor sector, with AMD emerging as one of the primary winners.

Gil Luria from D.A. Davidson elevated his rating on AMD from Neutral to Buy while simultaneously increasing his price objective from $220 to $375. His rationale centered on a “structural increase” in central processing unit demand coupled with “much improved” clarity regarding AMD’s position in the expanding data center landscape.

“CPU is reinserting itself as an indispensable foundation of the AI era,” Luria wrote. He called Intel’s results “a precursor for a huge step-up for AMD’s CPU franchise.”

Stifel’s Ruben Roy similarly increased his AMD price target, elevating it from $280 to $320 while maintaining his Buy recommendation. Roy contended that AMD deserves recognition as a fundamental artificial intelligence company rather than 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 investment where AMD maintains significant exposure.

Central Processing Units Regain the Spotlight

Throughout much of the artificial intelligence revolution, graphics processing units dominated investor attention and market narratives. However, Intel’s quarterly performance has redirected focus back toward CPUs. As agentic AI applications expand—autonomous software agents operating on behalf of users—computational requirements are diversifying beyond GPUs into high-performance central processors.

AMD’s product portfolio encompasses both CPUs and GPUs deployed across AI-focused data center servers. The company’s anticipated Helios rack platform, expected to debut in late 2026, will add another dimension to its data center offerings.

Roy’s analysis emphasized this comprehensive systems-level strategy as increasingly vital to evaluating AMD’s long-term growth trajectory.

With premarket trading already surpassing Stifel’s $320 price objective, substantial optimism appeared already incorporated into the stock price before regular trading commenced. Market participants are now turning their focus toward AMD’s own quarterly results, scheduled for release on May 5.

Broad-Based Semiconductor Strength

AMD’s rally isn’t occurring in isolation. The VanEck Semiconductor ETF (SMH) has advanced 27.73% year-to-date, significantly outpacing the S&P 500’s 4.07% increase over the identical timeframe.

Taiwan Semiconductor Manufacturing (TSM) has appreciated 23% this year. ASML has posted gains of 32%. Both companies represent major holdings within SMH.

TSMC carries particular significance in this context—AMD depends on the foundry for chip manufacturing. Persistent demand for cutting-edge semiconductors, especially those supporting AI workloads, directly benefits AMD’s production ecosystem.

AMD shares were already trading at record levels entering Friday’s trading session, with the semiconductor sector propelling broader market indices to new peaks earlier in the week.

DA Davidson’s $375 price target suggests additional appreciation potential even from today’s elevated valuation levels. The May 5 earnings release will serve as the next critical catalyst.

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