- AMD stock surged 2.8% following quantum computing partnership announcement with IBM for hybrid supercomputing platforms
- Truist analyst William Stein upgraded AMD from Hold to Buy, raising price target to $213 from $173
- Stein believes AMD could capture 10% of datacenter GPU market, no longer viewing company as mere Nvidia price check
- Partnership will integrate AMD’s CPUs, GPUs, and FPGAs with IBM’s quantum computers for complex problem solving
- AMD’s MI355 chip shipments began in June and are already impacting Q3 revenue expectations
Advanced Micro Devices stock jumped 2.8% Monday after announcing a quantum computing partnership with IBM and receiving a bullish analyst upgrade.
The collaboration will develop next-generation quantum-centric supercomputing architectures combining IBM’s quantum computers with AMD’s high-performance computing and AI accelerators.
IBM Partnership Details
The partnership aims to create scalable, open-source platforms using hybrid quantum-classical computing approaches. Teams will integrate AMD’s CPUs, GPUs, and FPGAs with IBM’s quantum systems.
Companies plan an initial demonstration later this year showcasing how IBM quantum computers work alongside AMD technologies for hybrid workflows.
“Quantum computing will simulate the natural world and represent information in an entirely new way,” said IBM CEO Arvind Krishna. The collaboration could help IBM deliver fault-tolerant quantum computers by decade’s end.
Truist Analyst Turns Bullish
Truist’s William Stein upgraded AMD from Hold to Buy, raising his price target from $173 to $213. This represents a 28% upside from current levels.
Stein’s upgrade marks a major shift in his AMD outlook. The analyst previously viewed AMD as merely a “price check” against Nvidia in datacenter markets.
Recent field feedback shows hyperscale customers now treat AMD as a genuine partner rather than just a pricing tool. This changing dynamic forms the basis of Stein’s upgraded view.
Datacenter GPU Potential
Stein draws parallels to AMD’s successful CPU comeback against Intel. A decade ago, AMD held less than 1% datacenter CPU share but now commands approximately 21%.
The analyst believes AMD’s MI355 chip, which began shipping in June, could be the company’s breakthrough moment in datacenter GPUs.
Stein now projects AMD could capture 10% of the datacenter GPU market over time, up from previous near-zero expectations.
AMD currently powers the world’s two fastest supercomputers according to TOP500 rankings. Frontier operates at Oak Ridge National Laboratory while El Capitan runs at Lawrence Livermore.
The stock upgrade comes as AMD faces intense competition from Nvidia in AI chip markets. However, growing hyperscale customer partnerships suggest AMD’s competitive position may be strengthening.
IBM shares also gained 0.9% on the quantum partnership news, reflecting investor optimism about the collaboration’s potential.
AMD’s consensus rating stands at Moderate Buy with 24 bullish analysts versus 10 neutral ratings. The average price target of $183.45 implies 11% upside potential.
