TLDR
- AMD stock jumped 2.27% in premarket trading following an expanded AI partnership with Cohere for enterprise deployments
- Intel is in early talks with AMD to manufacture chips through its foundry business, pushing Intel shares up 7%
- The Cohere deal enables AI models on AMD’s Instinct GPU infrastructure for commercial and sovereign AI applications
- AMD has gained 35.78% year-to-date, outperforming the S&P 500’s 14.10% return over the same period
- Analyst price targets range from $125.10 to $230.00, with an average of $185.77 suggesting potential upside
Advanced Micro Devices stock climbed this week on two separate developments. The chipmaker saw gains from potential manufacturing talks with Intel and a new enterprise AI partnership.
AMD shares rose 2.27% to $167.74 in premarket trading on October 2. The move followed news of an expanded collaboration with Cohere, an enterprise AI company.
Intel separately announced early discussions with AMD about manufacturing chips through its foundry business. Intel stock jumped 7% on Wednesday while AMD gained over 1% during regular trading.
Intel Foundry Partnership Could Reshape Chip Manufacturing
The potential Intel foundry deal would change the dynamic between the two x86 processor competitors. AMD currently manufactures all its chips with Taiwan Semiconductor Manufacturing Company.
Landing AMD as a customer would validate Intel’s foundry capabilities under CEO Lip-Bu Tan. The company is rebuilding its manufacturing business after years of production challenges.
For AMD, using Intel’s foundry would signal confidence in its rival’s manufacturing quality. The extent of any potential manufacturing agreement remains unclear.
Intel has recently secured investments from the U.S. government, Nvidia, and Softbank. Intel shares are up nearly 77% in 2025 as investor confidence grows.
Cohere Partnership Targets Enterprise and Sovereign AI Markets
The Cohere collaboration will deploy multiple AI models on AMD Instinct GPU infrastructure. Models include Command A, Command A Vision, Command A Translate, and North.
AMD plans to integrate Cohere’s North platform into its internal enterprise AI systems. The partnership focuses on commercial applications and sovereign AI deployments.
Vamsi Boppana, AMD’s senior vice president of AI, highlighted the performance and efficiency benefits. The collaboration addresses growing demand for domestic control of AI infrastructure.
Nick Frosst, Cohere’s co-founder, cited AMD’s total cost of ownership as attractive for sovereign AI projects. The deal strengthens AMD’s position against Nvidia in enterprise AI markets.
AMD Stock Performance and Analyst Outlook
AMD closed at $164.01 on October 1, up 1.37% from $161.79. Year-to-date, AMD has returned 35.78% versus the S&P 500’s 14.10% gain.
The stock trades with a $266 billion market cap and a forward P/E ratio of 26.81. AMD’s next earnings report is set for November 4, 2025, with an estimated EPS of $1.17.
Analyst price targets span from $125.10 to $230.00, averaging $185.77. The average target implies upside potential from current trading levels.
Over the past year, AMD is up 2.67% compared to the S&P 500’s 17.56% return. The semiconductor sector has experienced fluctuations during this period.
The Cohere partnership represents AMD’s continued push into enterprise AI infrastructure. The company aims to capture market share in AI accelerator chips.
Both Intel and AMD declined to provide official comments on the manufacturing discussions. Representatives from both companies stated they don’t comment on rumors or speculation.
