Advanced Micro Devices stock jumped 4.5% in morning trading to reach a new intraday record after two prominent analyst teams raised forecasts and reiterated bullish stances. Wells Fargo analyst Aaron Rakers increased his price target on the shares to $615 from $505 while keeping an Overweight rating, highlighting accelerating demand for server CPUs and healthy expectations for data-center GPU revenue.
Rakers laid out a multi-year revenue trajectory for AMD's server CPU business, forecasting roughly 68% year-over-year growth in 2026, followed by 28% growth in 2027 and 22% in 2028. His earnings projections for 2027 and 2028 run meaningfully above Wall Street consensus, according to the Wells Fargo note.
A separate, strongly worded upgrade came from Cantor Fitzgerald, which lifted its price target to $700 from $500 and also maintained an Overweight rating. Cantor Fitzgerald argued that AMD carries the strongest momentum in compute across semiconductor firms, a view that, combined with the Wells Fargo call, helped drive the stock to an intraday high of $566.20.
Market commentary from Citi added to the constructive narrative, with its recent update to AI semiconductor rankings noting that AI compute demand remains undersupplied. Citi identified DRAM memory shortages as the primary constraint on AI compute capacity, a dynamic cited as favorable to AMD's positioning within the market.
The broader market backdrop provided additional support. The Nasdaq composite was up more than 1.0% on the session while the S&P 500 gained roughly 0.5%, and semiconductor peers traded broadly higher as investors continued to favor AI infrastructure-related names.
AMD's gain comes after a substantial run over the past year. The stock's 52-week low stood at $133.50 compared with the intraday peak of $566.20 recorded during the session, underscoring the scale of the rally that has preceded today's uptick.
The confluence of two high-conviction analyst price-target increases, favorable sector-level momentum for technology and semiconductors, and AMD's progress in securing data-center CPU and GPU business combined to push the shares to record territory. Market participants interpreted the moves as further evidence of investor conviction that AMD's AI-driven growth cycle retains room to expand.
Note on reporting limitations - The article reports the analysts' published targets, ratings, and growth projections as stated. It also references recent market moves and third-party ranking commentary without introducing additional forecasts or assumptions beyond those presented.