- AMD surged nearly 38% in 3 months, beating SOX, S&P 500, and Nasdaq, fueled by AI demand and strong Q1 results.
- Analyst Arya sees AMD gaining 3–4% of the $300B–$400B AI chip market despite Nvidia's dominance, citing strong growth and valuation.
- PPI and Industrial Production drop Wednesday morning — see how Matt Maley is trading the reaction, live at 6 PM ET.
Advanced Micro Devices AMD stock surged nearly 38% in the last three months, buoyed by the AI frenzy. PHLX Semiconductor Index (SOX), of which AMD is also a constituent, generated 30% returns during the period.
AMD’s returns also topped the S&P 500’s 11% and the Nasdaq Composite’s 18% during the period.
Also Read: AMD ‘Serious AI Contender’ With Sights On Over $500 Billion TAM, Billions In Revenue: Analyst
On Monday, Cathie Wood‘s Ark Invest executed significant portfolio adjustments, prominently acquiring shares of AMD.
Last week, on CNBC’s “Halftime Report Final Trades,” Jason Snipe preferred AMD, emphasizing that Nvidia Corp NVDA isn’t the only strong chip stock.
In May, AMD reported first-quarter revenue of $7.44 billion, a 36% year-over-year increase, surpassing analyst estimates of $7.13 billion. This was driven by the strength of its core businesses, the expansion of its data center, and the momentum of AI. The chipmaker reported first-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 94 cents per share. The gross margin came in at 54% for the quarter.
AMD expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million. Analysts are currently forecasting second-quarter revenue of $7.24 billion.
AMD anticipates a second-quarter adjusted gross margin of 43%, reflecting an $800 million impact from inventory charges resulting from the U.S. government’s export controls.
Trending Investment Opportunities
AMD has a consensus price target of $141.09 based on the ratings of 38 analysts. The high is $200 issued by Rosenblatt on June 13, 2025. With an average price target of $163.33 between Melius Research and Piper Sandler, there’s an implied 16.78% upside for AMD from these most recent analyst ratings.
In May, Bank of America Securities analyst Vivek Arya projected that AMD would gain share through server and PC CPU growth, AI momentum, and a $10 billion Middle East contract pipeline.
Even though Arya expects Nvidia (80%+ share) and custom chips (10–15%) to dominate, he sees AMD capturing 3–4% of the $300 billion–$400 billion AI accelerator market.
Arya views AMD’s valuation as compelling and expects $6.6 billion in sales upside by 2027, supported by strong execution and a $6 billion buyback boost.
In June, Arya projected strong second-quarter momentum for AMD, driven by higher-priced new products and potential seasonal strength in the second half.
Price Action: AMD stock traded lower by 2.46% to $138.44 premarket at Tuesday’s last check.
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