Shares of Advanced Micro Devices (AMD +13.85%) popped on Friday, following positive analyst commentary.
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Like its rival, AMD stands to profit from the rise of AI agents
D.A. Davidson analyst Gil Luria upgraded AMD’s stock to buy from neutral and lifted his price forecast to $375 per share.
Luria pointed to Intel‘s blowout earnings report released after the market close on Thursday as a reason to be bullish on AMD’s shares. The semiconductor titan’s robust sales of data center chips provided clear evidence of the growing need for high-speed central processing units (CPUs) to power AI agents.
“We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise and believe the structural shift toward agentic AI workloads is creating unprecedented demand for server CPUs,” Luria said.
Today’s Change
(13.85%) $42.28
Current Price
$347.61
Key Data Points
Market Cap
$498B
Day’s Range
$334.51 – $352.99
52wk Range
$91.87 – $352.99
Volume
3.9M
Avg Vol
37M
Gross Margin
45.99%
Moreover, with demand likely to outpace supply, AMD can raise prices for its high-performance CPUs, according to Luria. That should help to boost the chip designer’s margins and earnings power.
More details are due out soon
Investors can expect to hear more about AMD’s AI-driven sales and profits from its upcoming first-quarter financial report on May 5. The company will also hold a conference call that same day beginning at 5:00 p.m. ET, during which management will likely discuss the chipmaker’s impressive AI-fueled growth prospects.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool has a disclosure policy.
