Key Highlights
- Advanced Micro Devices stock climbed more than 10% during premarket hours on April 24, surpassing $340 and establishing new all-time records
- Intel’s impressive first-quarter performance — delivering $13.6B in revenue and $0.29 earnings per share — sparked optimism throughout semiconductor markets
- D.A. Davidson elevated AMD to a Buy recommendation, dramatically increasing its price objective from $220 to $375
- Stifel elevated its price objective from $280 to $320 while maintaining a Buy stance, emphasizing AMD’s strategic position in AI infrastructure
- AMD’s quarterly earnings announcement scheduled for May 5 has analysts anticipating results that could significantly exceed current projections
Shares of Advanced Micro Devices surged beyond 10% during premarket sessions on Friday, April 24, breaking through $340 and establishing fresh record territory. The rally followed Intel’s robust first-quarter financial performance and simultaneous upgrades from two prominent Wall Street firms.
Advanced Micro Devices, Inc., AMD
Intel unveiled first-quarter revenue totaling $13.6 billion, substantially exceeding analyst projections. The company’s adjusted earnings per share of $0.29 significantly outpaced market expectations. These impressive figures ignited widespread enthusiasm throughout the semiconductor industry, with AMD emerging as one of the primary beneficiaries.
D.A. Davidson’s Gil Luria elevated AMD from Neutral to Buy while dramatically raising his price objective from $220 to $375. His rationale centered on what he described as a “structural increase” in processor demand and significantly enhanced clarity regarding AMD’s position in data center expansion.
“The CPU is reinserting itself as an indispensable foundation of the AI era,” Luria stated. He characterized Intel’s performance as “a precursor for a huge step-up for AMD’s CPU franchise.”
Meanwhile, Stifel’s Ruben Roy increased his AMD price target 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 semiconductor stock.
He referenced massive multi-gigawatt infrastructure commitments from companies like Meta Platforms and OpenAI as evidence of the extraordinary scale of AI infrastructure investments that directly benefit AMD.
Processors Reclaim the Spotlight
Throughout much of the artificial intelligence expansion, graphics processing units dominated investor attention. However, Intel’s quarterly results have shifted focus back to central processing units. As agentic AI applications expand — autonomous software agents operating on behalf of users — computational requirements are diversifying beyond GPUs into high-performance processors.
AMD’s processor and graphics offerings are deeply integrated into servers powering AI data centers. The company’s upcoming Helios rack platform, anticipated to debut in late 2026, will add another dimension to its data center product lineup.
Roy’s analysis positioned this comprehensive systems-level strategy as increasingly critical to evaluating AMD’s long-term growth trajectory.
With premarket valuations already surpassing Stifel’s $320 target, significant optimism had been incorporated into pricing before market opening. Investor focus has now pivoted toward AMD’s upcoming quarterly report, scheduled for 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, substantially outpacing the S&P 500’s 4.07% increase during the identical timeframe.
Taiwan Semiconductor Manufacturing (TSM) has appreciated 23% this year. ASML has posted gains of 32%. Both companies represent major components within SMH.
TSMC holds particular significance for AMD — the company depends on TSMC for chip manufacturing. Continued strong demand for cutting-edge semiconductors, especially those supporting AI applications, provides direct support to AMD’s production ecosystem.
AMD stock had already reached unprecedented levels entering Friday’s trading session, with the semiconductor sector driving broader market indices to new peaks earlier in the week.
DA Davidson’s $375 price target suggests additional appreciation potential even from current elevated valuations. The May 5 earnings announcement will serve as the next critical milestone.
