After months of lagging behind Nvidia (NVDA) in the AI chip race, Advanced Micro Devices (AMD) may finally be turning a corner.
The AI chipmaker’s stock had tumbled earlier this year on concerns about trading uncertainties and its competitive footing. Now, with news on the company’s advanced chips and the market’s warming up, Wall Street is starting to reconsider AMD’s long-term potential in the booming AI space.
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On June 12, the company held a developer conference in San Jose, California, called “Advancing AI,” to discuss its MI350 series and MI400 series AI chips that would compete with Nvidia’s Blackwell.
AMD’s CEO Lisa Su said the MI350 series is faster than Nvidia’s, Bloomberg reported.
Su previously predicted $500 billion in AI accelerators market revenue by 2028, but she now sees it topping that number.
“People used to think that $500 billion was very large number,” she said. “Now it seems well within grasp.”
In the past five days, AMD stock is up 11.5%.
AMD stock closed at $129.58 and is up roughly 7.3% year-to-date.
Image source: Cheng/Getty Images
AMD stock rebounds, Cathie Wood bets big
On May 6, AMD reported stronger-than-expected first-quarter results and gave a solid forecast for the current quarter, despite ongoing export restrictions on AI chip sales to countries like China.
The company posted adjusted earnings of 96 cents per share on $7.44 billion in revenue, beating Wall Street’s expectations of 94 cents and $7.13 billion, respectively. Its data center business generated $3.7 billion in sales, a 57% increase from a year earlier and ahead of analyst estimates.
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“While we face some headwinds from the dynamic macro and regulatory environments…we believe they are more than offset by the powerful tailwinds from our leadership product portfolio,” CEO Lisa Su told analysts.
In May, the chipmaker announced a partnership with Saudi Arabian AI startup Humain to help build a $10 billion AI-computing infrastructure over five years, a project that could also boost AMD’s role in the AI-chip market.
These developments were a much-needed boost for AMD, whose stock had been under pressure for quite a while. In 2024, the shares lost about 18% as investors questioned whether AMD could catch up to Nvidia, the market leader in the AI-GPU race.
In the first four months of 2025, AMD stock lost nearly 20%, dragged by a broader tariff-related pullback, a curb on chip sales overseas and concerns about whether demand for high-priced AI GPUs was sustainable after DeepSeek’s rollout.
Cathie Wood, chief of Ark Investment Management, significantly boosted her AMD stake last week, buying 247,753 shares worth about $32.1 million on June 20 and 37,377 shares valued at $4.8 million on June 17.
Wood had sold about 121,000 AMD shares in the first quarter of 2024 (then 38.9% of her total stake) when the stock was near its peak. Since then, as the stock has dropped, she’s been rebuilding her position, according to data from Stockcircle.
Melius upgrades AMD stock, lifting price target on higher GPU demands
Melius Research has upgraded AMD stock to buy from hold with a price target of $175, up from $110, thefly.com reported on June 23.
The analysts said in a research report that “many things have changed for the better since the beginning of the year.” They expect AMD’s GPU sales to ramp up from 2026 to 2028, given a “sustainable surge in inferencing.”
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According to the analysts, AMD’s GPU roadmap is gaining more global attention, especially the MI400 series set to launch next year, which will feature rack-scale configurations. Melius thinks AMD’s earnings per share could exceed $8 within the next two years.
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Last week, Piper Sandler raised its price target for AMD to $140 from $125 and reiterated an overweight rating, citing higher demand for the company’s GPUs.
AMD stock closed at $129.58 and is up roughly 7.3% year-to-date.