AMD Soars 3.14% on AI Advances, Analyst Upgrade

On June 26, 2025, Advanced Micro Devices (AMD) experienced a notable pre-market rise of 3.14%, reflecting a strong upward trend in its stock performance.

AMD's recent stock surge can be attributed to several key factors. Analysts have shown significant optimism towards the company, with Ben Reitzes from Melius Research upgrading AMD's stock rating to 'buy' and raising the target price to $175. This move was driven by AMD's advancements in AI accelerators and computing systems, which have bolstered investor confidence.

In terms of product innovation, AMD has made substantial progress. The company unveiled its new AI data center system on June 12, which not only offers competitive pricing but also outperforms rival products from NVIDIA. This development has further enhanced market expectations for AMD's future growth.

Additionally, AMD's new CDNA 4 architecture MI355X GPU has secured an order from Oracle, demonstrating its competitive edge in the high-performance chip market. With the impending release of the MI400 chip and the growing demand for AI inference, AMD is poised for robust sales performance.

AMD's strategic partnerships have also played a crucial role in its development. The collaboration with HCLTech aims to drive advancements in AI, digital, and cloud solutions, further solidifying AMD's leadership in the technology sector.

From a financial perspective, AMD's first-quarter performance was impressive, with revenue growing by 36% to $7.4 billion. The data center segment, in particular, saw a 57% increase in revenue, reaching $3.7 billion. These figures underscore AMD's strong position in the AI accelerator, CPU, and GPU markets.