AMD Stock Jump 7% as AI Demand Fuels Bullish Analyst Upgrades

TLDR

• Bernstein raised AMD’s price target to $225 from $200 while keeping a Market Perform rating
• KeyBanc analyst expects AMD to beat Q4 estimates on Feb. 3, citing strong demand for Turin server CPUs
• AMD may already be sold out of server CPUs for 2026, potentially enabling 15% price increases
• Bernstein predicts AMD’s Epyc processor sales could jump 30% in 2026
• OpenAI partnership expected to boost AI revenue in second half of 2026

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AMD shares climbed 7.7% on Wednesday after two Wall Street analysts issued bullish commentary on the chipmaker’s business. The stock closed at $249.76.

Advanced Micro Devices, Inc., AMD

Bernstein analyst Stacy Rasgon raised his price target on AMD to $225 from $200. He maintained a Market Perform rating on the stock.

The analyst pointed to progress in AMD’s artificial intelligence efforts. OpenAI remains the only major announced customer for AMD’s Helios chips so far.

Rasgon expects OpenAI’s ramp to start later this year. This timing means less immediate pressure on AMD’s near-term AI prospects.

The analyst sees strength in AMD’s core server business. Market share gains could support the stock while investors wait for larger AI wins.

AMD currently trades at 35 times forward earnings. That’s 10 turns higher than Nvidia, suggesting the market already expects strong AI performance.

KeyBanc analyst John Vinh expects AMD to beat consensus estimates when it reports fourth-quarter results on Feb. 3. His optimism stems from robust demand for AMD’s Turin data center CPUs.

Vinh believes AMD is almost sold out of server CPUs for 2026. The tight supply situation could allow AMD to raise prices by as much as 15%.

Cloud computing companies are rushing to secure chip supplies. This urgency gives AMD pricing power in its server business.

Server Business Takes Center Stage

Some investors still question whether AMD can compete effectively with Nvidia in advanced GPUs. Vinh says management comments about customer wins could address these concerns.

The analyst wants to hear production schedules during AMD’s upcoming conference call. Details about GPU deployment could calm investor worries about AMD’s AI competitiveness.

Bernstein’s Rasgon is growing more optimistic about AMD’s server-related business. He thinks sales of AMD’s high-performance Epyc processors could surge 30% in 2026.

The analyst expects AMD’s AI-related sales to benefit from the OpenAI partnership. This boost should arrive in the second half of 2026.

Pricing Power Emerges

AMD’s revenue grew nearly 32% in the last twelve months. Analysts forecast similar growth rates for this year.

The company’s upcoming earnings announcement is scheduled for Feb. 3, just 13 days away. Investors will be watching for commentary on server CPU demand and AI progress.

AMD appointed KC McClure to its board of directors recently. McClure previously served as Chief Financial Officer at Accenture.

Riot Platforms signed a 10-year Data Center Lease and Services Agreement with AMD at its Rockdale site in Texas. The agreement includes an initial deployment of 25 MW of critical IT infrastructure with potential expansion to 200 MW, set to be delivered in phases starting January 2026.

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