Advanced micro devices (Nasdaq: AMD) Shares rose more than 8% in pre-market trading on Friday, April 24, extending an already strong weekly rise and pushing the price beyond $330.
The move reflects a combination of strong demand for chips, a more positive outlook for the industry, and a bullish analyst review.
A noticeable catalyst came Intel (Nasdaq: Intech) Exploding quarterly earnings And optimistic guidance, which strengthened confidence in the sector.
Notably, Intel reported revenue of $13.6 billion, comfortably above consensus estimates, while adjusted earnings per share of $0.29 far exceeded expectations, helping lift peers, including AMD.
Stifel upgrades its price target for AMD stock price
Stifel was quick to react to the rally, raising its price target from $280 to $320 while maintaining a “buy” rating. Analyst Robin Roy said that instead of viewing the company as a cyclical semiconductor name, it should be analyzed as a major AI (Amnesty International) player.
He linked the upgrade to multi-gigawatt commitments from Meta platforms (Nasdaq: dead) and OpenAIwhich frames AMD’s growth story around large-scale AI deployments rather than short-term momentum.
According to his note, AMD’s central processing units (CPUs) and graphics processing units (GPUs) are embedded in the servers that power the AI. Data centerswhile its Helios Rack platform is expected to launch in late 2026. Roy claims that this systems-level approach is increasingly central to how investors evaluate the company’s potential.
With pre-market prices now exceeding the Stifel target, much of the optimism appears justified, and investor focus is increasingly turning towards AMD’s upcoming earnings report on May 5.
The power of semiconductors pushes AMD even further
As mentioned, the upward trend is also supported by sector indicators in general Exceptional results. In fact, the VanEck Semiconductor ETF (SMH), which tracks 25 chip-related companies, is up 27.73% year to date, significantly outperforming the broader S&P 500, which is up just 4.07% over the same period.
Taiwan Semiconductor Manufacturing Co., Ltd (New York Stock Exchange: TSM) and ASML (Nasdaq: ASML), which are the largest components of the ETF, at 23% and 32%, respectively. TSMC is particularly noteworthy because AMD relies on it for chip production. Accordingly, its forecasts are closely tied to continued demand for advanced semiconductors, especially those powering AI workloads.
Moreover, while GPUs have been central to the AI boom, demand is increasingly spreading to CPUs as massive companies expand their infrastructure. This shift is driving demand for high-performance processors, making AMD able to further leverage its aforementioned data center portfolio.
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