AMD Soars 3.25% on Saudi Partnership, Earnings Surge

On May 14, 2025, Advanced Micro Devices (AMD) saw a significant pre-market rise of 3.25%, driven by a series of strategic partnerships and strong financial performance.

Advanced Micro Devices (AMD) has recently announced a multi-year collaboration with a data center company based in Saudi Arabia. This partnership is expected 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 various sectors including aerospace, defense, energy, and security.

AMD's first-quarter 2025 earnings report showcased a 36% year-over-year increase in revenue, largely attributed to the booming data center market and a resurgence in PC sales. The company's Zen 5 Ryzen CPUs have been particularly successful, enhancing AMD's market presence. Additionally, AMD's profitability improved significantly, with a 50% GAAP gross margin and a 54% non-GAAP gross margin, reflecting a strategic focus on high-margin products, particularly data center chips. The company's non-GAAP earnings per share also increased by 55% year-over-year, indicating strong operational growth and cost management.

Analysts have responded positively to AMD's performance, with several reiterating their Buy ratings. Ingo Wermann from DZ Bank upgraded his stance from neutral to bullish, setting a price target of $118 per share. Hans Mosesmann from Rosenblatt Securities is even more optimistic, predicting that AMD could reach $200 within the next twelve months. The favorable economic conditions in the U.S., including tax cuts and reduced regulations, are expected to further boost investments in AI and cloud computing, providing a conducive environment for AMD's growth.