Key Takeaways
- AMD shares rallied approximately 14% Friday following Intel’s impressive first-quarter earnings
- D.A. Davidson elevated AMD to Buy status and increased the price target from $220 to $375
- Intel’s quarterly performance indicated strengthening CPU demand fueled by agentic AI workload transitions
- Jefferies maintains AMD is capturing server market share away from Intel
- AMD’s first-quarter earnings report is scheduled for May 5
Advanced Micro Devices (AMD) experienced a remarkable Friday session, surging approximately 14% to reach the $350 level as investors responded enthusiastically to Intel’s exceptional first-quarter financial performance.
Advanced Micro Devices, Inc., AMD
Intel’s quarterly disclosure proved beneficial beyond its own stock performance. The report delivered a clear message throughout the semiconductor industry that central processing unit demand is accelerating rapidly, positioning AMD as a prime beneficiary of this trend.
D.A. Davidson’s Gil Luria elevated AMD from Neutral to Buy while dramatically increasing his price target from $220 to $375—a substantial revision in a single analyst note.
Luria specifically cited Intel’s earnings as the catalyst. Intel delivered first-quarter revenue and profit figures that significantly exceeded Wall Street’s projections, with data center chip sales demonstrating particular strength.
The underlying catalyst? Agentic AI applications. As artificial intelligence evolves from training massive language models toward inference operations—where models perform practical, real-world tasks—CPUs have emerged as critical infrastructure components.
“We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise,” Luria stated. He emphasized that the fundamental transition toward agentic AI is generating server CPU demand at unprecedented levels.
With demand forecasted to exceed available supply, Luria also suggested AMD possesses pricing power across its CPU portfolio, which could expand profit margins and enhance earnings potential.
AMD’s Competitive Position Against Intel
Intel captured market attention Friday with a 24% stock jump driven by its quarterly results. However, multiple analysts believe AMD represents the superior long-term investment opportunity.
Jefferies, which raised its Intel price target Thursday evening, indicated AMD remains its preferred semiconductor pick. The firm maintains a Buy rating with a $300 target on AMD, while holding Intel at a Hold rating.
“INTC noted double-digit server unit growth with momentum extending into 2027, but AMD likely sees even better growth,” the Jefferies research team noted. They also highlighted AMD’s forthcoming Venice processors, anticipated in late 2026 or early 2027, as a significant catalyst.
Morgan Stanley’s Joseph Moore presented a more conservative perspective. Maintaining Equal Weight ratings on both companies, Moore contended Intel’s earnings outperformance stemmed from supply limitations—not market share gains from AMD.
Moore indicated the CPU “music is likely to keep playing for a while, as there is no indication that supply catches up to demand.”
Semiconductor Industry Rally
AMD wasn’t the only semiconductor stock posting significant gains. Arm Holdings (ARM) also climbed nearly 15% Friday. Arm recently revealed intentions to manufacture its own CPU, positioning itself as a direct competitor to both Intel and AMD.
The PHLX Semiconductor Index advanced 4.5% during the session, marking an 18th consecutive winning day. The index has appreciated 43% in 2026 and exceeded 140% gains over the trailing twelve months.
AMD’s shares reached an intraday peak of $352.99 Friday, representing its highest price point in more than a year. The stock’s 52-week trading range extends from $91.87 to $352.99.
AMD is scheduled to announce its first-quarter financial results on May 5, followed by a conference call commencing at 5:00 p.m. ET the same evening.
