Advanced Micro Devices shares extended their rally on Friday, climbing more than 2% in premarket trading to trade near $642 and touching a fresh 52-week high. The move follows the chipmaker’s recent climb past a $1 trillion market capitalization, making it the fourth U.S. semiconductor company to reach that milestone after Nvidia, Broadcom and Micron.
AMD had been rangebound between roughly $450 and $550 for months before breaking out after reports of about 10% price increases across AI chips, graphics cards and chipsets. OptionsPlay’s Tony Zhang told CNBC he sees AMD reaching $750 by November, citing strong demand for AMD CPU and GPU server products. Still, Wall Street’s average price target sits at $604, below the current price, while the stock’s P/E ratio is above 160.
Bank of America added fresh fuel to the bullish case by lifting its AMD price target from $620 to $720 and maintaining a Buy rating. The bank now models the server CPU market expanding from roughly $61 billion in 2026 to $211 billion by 2030, and raised its 2027 and 2028 AMD estimates by 2% and 3%, respectively. BofA’s thesis is that AI agents will require far more general-purpose CPU computing alongside GPU accelerators, a view supported by Akamai’s $11.6 billion seven-year infrastructure agreement with Anthropic, which could expand to about $20 billion.
AMD’s latest results support the AI infrastructure story: second-quarter revenue rose 50% year over year to $11.54 billion, with data center revenue more than doubling, and EPS of $1.66 beat estimates. The company has also guided for about $13 billion in third-quarter revenue. However, some caution signals are appearing. The relative strength index sits at 72.64, above the overbought threshold of 70, and insiders sold more than $105 million worth of stock over the past 90 days. Institutional investors still hold about 71% of shares, with BlackRock as the largest stakeholder.
