Key Takeaways
- AMD shares rose more than 10% during premarket hours on April 24, climbing past $340 to establish new records
- Intel delivered impressive Q1 figures with $13.6B in revenue and $0.29 earnings per share, lifting sentiment throughout the semiconductor industry
- D.A. Davidson moved AMD to Buy status while increasing its valuation target from $220 to $375
- Stifel elevated its price objective from $280 to $320 with a maintained Buy recommendation, emphasizing AMD’s position in AI infrastructure
- AMD’s upcoming earnings release scheduled for May 5 has analysts anticipating results exceeding current forecasts
Shares of Advanced Micro Devices experienced a significant rally exceeding 10% during premarket activity on April 24, establishing fresh record territory above the $340 mark. This surge followed Intel’s robust first-quarter financial results and dual analyst upgrades released in quick succession.
Advanced Micro Devices, Inc., AMD
Intel delivered first-quarter revenue reaching $13.6 billion, surpassing market consensus projections. The company’s adjusted earnings per share registered at $0.29, substantially exceeding analyst forecasts. These results sparked widespread enthusiasm throughout the semiconductor industry, with AMD emerging as a primary beneficiary.
D.A. Davidson’s Gil Luria elevated AMD’s rating to Buy from Neutral while advancing his valuation target from $220 to $375. His analysis highlighted a “structural increase” in processor demand and significantly enhanced clarity regarding AMD’s position in data center expansion.
“CPU is reinserting itself as an indispensable foundation of the AI era,” Luria noted in his research. He described Intel’s performance as “a precursor for a huge step-up for AMD’s CPU franchise.”
Stifel’s Ruben Roy similarly increased his AMD price target, advancing it from $280 to $320 while maintaining his Buy recommendation. Roy advocated for viewing AMD as a fundamental artificial intelligence company rather than a conventional cyclical chip manufacturer.
He highlighted multi-gigawatt infrastructure pledges from Meta Platforms and OpenAI as evidence of the massive AI investment cycle benefiting AMD.
Processors Regain Market Focus
Throughout the majority of the artificial intelligence expansion, graphics processing units dominated investor attention. Intel’s quarterly results, however, redirected focus back to central processing units. As agentic AI applications expand—autonomous software systems acting on behalf of users—computational requirements are extending beyond GPUs to include high-performance processors.
AMD’s processor and graphics chip offerings are integrated throughout AI data center server infrastructure. The company’s Helios rack platform, anticipated for late 2026 release, will add another dimension to its data center product lineup.
Roy’s analysis characterized this comprehensive systems approach as increasingly important for evaluating AMD’s expansion trajectory.
With premarket valuations already surpassing Stifel’s $320 projection, considerable optimism had been incorporated into pricing before market opening. Market participants are now directing attention toward AMD’s forthcoming earnings announcement scheduled for May 5.
Broad Industry Gains
AMD’s rally represents part of a wider industry trend. The VanEck Semiconductor ETF (SMH) has advanced 27.73% year-to-date, significantly outperforming the S&P 500’s 4.07% increase during the identical timeframe.
Taiwan Semiconductor Manufacturing (TSM) has appreciated 23% through the current year. ASML has registered gains of 32%. Both companies rank among SMH’s top holdings.
TSMC holds particular relevance for AMD—the company depends on TSMC for semiconductor fabrication. Continued strength in advanced chip demand, especially for AI-related applications, provides direct support to AMD’s manufacturing partnerships.
AMD shares reached unprecedented valuations entering Friday’s trading session, with the semiconductor sector driving broader market advances to fresh peaks earlier in the week.
DA Davidson’s $375 valuation suggests additional upside potential from current elevated pricing. The May 5 quarterly report represents the next critical catalyst for the stock.
