Key Takeaways
- Advanced Micro Devices shares climbed more than 10% during Friday’s premarket session on April 24, breaching $340 for the first time
- Intel’s impressive first-quarter performance — $13.6B in revenue and $0.29 earnings per share — lifted sentiment throughout the semiconductor industry
- D.A. Davidson moved AMD to Buy from Neutral, dramatically increasing its price objective from $220 to $375
- Stifel increased its price objective from $280 to $320 while maintaining its Buy recommendation, emphasizing AMD’s critical position in AI infrastructure
- AMD’s earnings announcement scheduled for May 5 has analysts anticipating results that could exceed current forecasts
Shares of Advanced Micro Devices skyrocketed over 10% during premarket hours on Friday, April 24, establishing fresh all-time highs above the $340 mark. The dramatic upward movement followed Intel’s impressive first-quarter financial results and simultaneous upgrades from two prominent Wall Street analysts.
Advanced Micro Devices, Inc., AMD
Intel delivered first-quarter revenue totaling $13.6 billion, significantly exceeding Wall Street consensus projections. The company’s adjusted earnings per share registered at $0.29, substantially surpassing analyst expectations. These robust results sparked widespread enthusiasm throughout the semiconductor industry, with AMD emerging as one of the primary beneficiaries of the positive sentiment.
D.A. Davidson’s Gil Luria elevated AMD’s rating to Buy from Neutral while simultaneously boosting his price objective from $220 to $375. His upgrade rationale centered on what he described as a “structural increase” in central processing unit demand and significantly “improved visibility” regarding AMD’s strategic positioning within the expanding data center landscape.
“CPU is reinserting itself as an indispensable foundation of the AI era,” Luria stated in his research note. He characterized Intel’s performance as “a precursor for a huge step-up for AMD’s CPU franchise.”
Meanwhile, Stifel’s Ruben Roy elevated his price target on AMD from $280 to $320 while retaining his Buy rating. Roy contended that investors should reassess AMD as a fundamental artificial intelligence infrastructure company rather than viewing it through the traditional cyclical semiconductor lens.
Roy highlighted substantial multi-gigawatt infrastructure commitments from major technology companies like Meta Platforms and OpenAI as evidence of the massive scale of AI-related investment directly benefiting AMD’s business.
Central Processors Regain Spotlight
Throughout much of the artificial intelligence revolution, graphics processing units dominated investor attention and media coverage. However, Intel’s quarterly results have redirected focus back toward central processing units. As agentic AI applications expand — autonomous software systems operating on behalf of users — computational requirements are extending beyond GPUs to encompass high-performance processors.
AMD’s product lineup includes both CPUs and GPUs integrated throughout AI data center server infrastructure. The company’s forthcoming Helios rack platform, anticipated to debut in late 2026, will further expand its data center offerings.
Roy’s analysis positioned 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 target, considerable optimism appeared reflected in the stock price before regular trading commenced. Market participants are now directing their attention toward AMD’s upcoming quarterly report scheduled for May 5.
Broad Industry Strength
AMD’s performance isn’t occurring in isolation. The VanEck Semiconductor ETF (SMH) has advanced 27.73% year-to-date, substantially outperforming the S&P 500’s 4.07% increase during the identical timeframe.
Taiwan Semiconductor Manufacturing (TSM) has appreciated 23% this year. ASML has surged 32%. Both companies represent major holdings within the SMH portfolio.
TSMC holds particular significance for AMD — the company depends on Taiwan Semiconductor for chip fabrication. Continued robust demand for cutting-edge semiconductors, especially those powering AI applications, provides direct support for AMD’s manufacturing supply chain.
AMD shares were already trading at record levels entering Friday’s trading session, with the semiconductor sector driving broader market indices to fresh highs earlier in the week.
DA Davidson’s $375 price objective suggests additional upside potential even from current elevated valuation levels. The company’s May 5 earnings release will serve as the next critical catalyst for the stock.
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