Advanced Micro Devices (AMD) is making big moves to break into the trillion-dollar club, announcing a $2 billion investment in the United Kingdom to build a cluster of AI supercomputers. The five-year plan, unveiled at London Tech Week, includes two key systems: “Zenith,” to be constructed at the University of Cambridge, and “Sunrise,” developed with the UK Atomic Energy Authority for nuclear fusion research. Sunrise, once operational, will be the world’s most powerful computer dedicated to fusion, a potentially unlimited clean energy source.
The announcement comes amid a wave of Wall Street enthusiasm. AMD beat Q1 earnings expectations with $1.37 per share versus the $1.29 consensus, while revenue surged 37.8% year-over-year to $10.25 billion. Data center revenue jumped 57% to $5.8 billion, now accounting for over half of total sales. Goldman Sachs upgraded AMD from Neutral to Buy and lifted its price target from $240 to $450, while TD Cowen set a target of $600. Barclays went even higher, pointing to $665 on rising AI-driven CPU demand. Institutional investors piled in, with Krane Funds Advisors boosting its stake by 72.7% in Q4 and Norges Bank opening a $4.9 billion position.
Not all signals are bullish. Insiders sold $119.5 million worth of shares in the past 90 days, and a broad chip sell-off followed Broadcom’s disappointing AI guidance, dragging AMD stock down 11% in a single session. Still, the stock rebounded quickly, trading at $466.38, well above its 50-day moving average of $358.36. CEO Jeff Kilburg of KKM Financial described the dip as a buying opportunity, noting the overall AI trend remains intact.
AMD’s commercial ties are strengthening. A $60 billion chip supply deal with Meta gives the social media giant a stake in AMD, while OpenAI signed a similar arrangement that could lead to up to 10% ownership. With a market cap around $850 billion, AMD needs less than a 20% share price increase to cross the trillion-dollar threshold. Analysts project full-year earnings of $6.20 per share, supported by the explosive growth of the data center segment.
