AMD Soars 3.21% on Saudi Partnership, Analyst Upgrade

On May 14, 2025, Advanced Micro Devices (AMD) saw a significant pre-market rise of 3.21%, driven by a series of strategic partnerships and positive analyst coverage.

Advanced Micro Devices (AMD) has recently secured a multi-year collaboration with a data center company based in Saudi Arabia. This partnership, valued at $200 billion, aims to accelerate the delivery of high-density GPU platforms and rack systems for DataVolt's large-scale AI facilities in both Saudi Arabia and the United States. The collaboration is part of a broader initiative by Saudi Arabia to become a global hub for technology and innovation, with significant investments in AI and data center infrastructure.

In addition to this strategic partnership, AMD has received positive coverage from analysts. Raymond James initiated coverage on AMD, assigning a "strong buy" rating and setting a target price of $41 per share. The analysts highlighted AMD's leadership in AI-optimized infrastructure, noting that AI platforms account for 70% of the company's revenue. This endorsement underscores the market's confidence in AMD's growth potential, particularly in the rapidly expanding AI sector.

AMD's strong performance in the first quarter of 2025 further bolstered investor optimism. The company reported a 36% year-over-year increase in revenue, driven by robust growth in the data center market and a resurgence in PC sales, thanks to competitive products like the Zen 5 Ryzen CPUs. AMD also improved its profitability, achieving a 50% GAAP gross margin and a 54% non-GAAP gross margin, reflecting a strategic focus on high-margin products.

Looking ahead, AMD's management remains optimistic about the company's growth prospects. The favorable macroeconomic conditions in the U.S., including tax cuts and regulatory reforms, are expected to support continued investment in AI and cloud computing, further driving AMD's growth. With a strong product portfolio and strategic partnerships, AMD is well-positioned to capitalize on the growing demand for AI technologies.