AMD Breaks Key Level on Stock Upgrade, GPU Optimism, Eyes $150+
Following optimistic updates and investor enthusiasm for AMD's AI chip prospects, the company's shares are once again on the move, rising...
Quick overview
- AMD shares surged nearly 11% last week, closing at $128, and continued to rise, reaching above $138 this week due to investor excitement over AI technology.
- Cathie Wood's significant purchase of AMD shares and an upgrade from Melius Research, raising the price target to $175, have fueled renewed institutional interest.
- AMD's recent AI developer event showcased upcoming chips that could compete with Nvidia's offerings, further boosting investor confidence.
- Strong financial results, particularly a 57% revenue increase in the data center unit, support the bullish outlook for AMD as it aims to challenge Nvidia in the AI market.
Following optimistic updates and investor enthusiasm for AMD’s chip prospects, the company’s shares are once again on the move, rising substantially.
AMD Rebounds Strongly as AI Catalysts Drive Momentum
Advanced Micro Devices (NASDAQ: AMD) staged an impressive comeback last week, surging nearly 11% to close at $128 after a period of consolidation. This week began with renewed bullishness as AMD opened with a strong gap on Monday and extended gains further on Tuesday, closing above $138 — an 8% daily gain. The rally was fueled by growing investor enthusiasm for AI technology, bolstered by high-profile buying and fresh optimism over AMD’s competitive positioning.
Strategic Buying and Confidence Fuel the Rally
A key driver of the upside move was Cathie Wood’s high-profile purchase of AMD shares, signaling renewed institutional interest. In parallel, analysts at Melius Research raised their price target from $110 to $175 and upgraded AMD to a “Buy” rating. They emphasized AMD’s growing strength in the AI inference market, suggesting it is now in a better position to challenge Nvidia’s dominance.
Melius specifically highlighted “many things have changed for the better” since the start of 2025 — citing improving fundamentals, stronger demand, and more competitive product development.
Developer Day Highlights and Future AI Roadmap
Further reinforcing investor confidence was AMD’s recent AI developer event held in San Jose. CEO Dr. Lisa Su introduced the upcoming MI350 and MI400 chips, positioning them as possible competitors to Nvidia’s Blackwell GPUs. According to Bloomberg, Su suggested these chips could outperform Blackwell and forecast the AI accelerator market could top $500 billion by 2028 — higher than her previous projection.
Strong Earnings and Technical Breakout Support Bullish View
Financial results have also supported the rally. AMD’s data center unit posted a 57% year-over-year increase in revenue, contributing $3.7 billion of the total $7.44 billion in Q1 — beating market expectations. The AMD share price has now moved decisively above its 100-week SMA (green), often seen as a major trend signal.
With upward momentum strong and institutional sentiment improving, next technical targets could lie at $150 and potentially $174, where prior resistance levels exist.
Conclusion: AMD is riding the crest of a new wave in AI and data center investment, with bullish analyst upgrades, strategic buying, and a growing product roadmap reinforcing its long-term thesis. If momentum continues, AMD could soon challenge higher valuation zones — especially as it narrows the gap with Nvidia in the race for AI dominance.
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