AMD stock continues to ride on a bullish momentum as it surged over 8% on Wednesday, making it one of the top gainers in the semiconductor sector.
The surge reflects recent optimism about AMD’s expanding role in the AI chip market, fueled by new partnerships, including a significant deal to supply chips to Oracle’s cloud infrastructure and collaborations with AI leaders like OpenAI.
Moreover, the investors’ confidence is also boosted by recent positive commentary by analysts, who also raised their price targets on AMD stock.
Why is AMD stock soaring today?
AMD’s stock is on a roll, and it’s not hard to see why. The company’s getting a big boost from new AI infrastructure deals and a wave of fresh investor confidence in the semiconductor space.
One of the biggest headlines? AMD just landed a major deal to supply 50,000 of its high-end Instinct MI450 AI chips to Oracle Cloud Infrastructure starting in late 2026.
That’s on top of a huge multibillion-dollar partnership with OpenAI, where AMD will deliver up to 6 gigawatts of GPUs over the next few years, beginning with a 1-gigawatt rollout in 2026.
Moves like these are helping AMD position itself as a real challenger to Nvidia in the red-hot AI chip race.
The broader market is also giving AMD some tailwinds. Demand for AI chips is exploding as companies race to build and scale new AI models.
The entire semiconductor sector is riding the generative AI boom, with data centers scrambling for more powerful chips.
Adding to the momentum, HSBC just raised its price target for AMD from $185 to $310, calling for big gains driven by AI-related revenue growth.
With institutional investors piling in and momentum traders joining the ride, AMD shares are breaking out technically, backed by optimism about its strong product roadmap and growing presence in AI infrastructure.
What analysts say
Wall Street has responded strongly to AMD’s recent momentum, with several firms lifting their price targets, though not all analysts see unlimited upside.
Wolfe Research upgraded AMD to “Outperform” with a $300 price target, citing continued strength from the OpenAI partnership and anticipating earnings per share exceeding $10 in the near term.
HSBC followed with a notable hike, raising its price target from $185 to $310 while maintaining a Buy rating, emphasizing the massive AI revenue potential that analysts believe the market has underestimated.
Barclays is also jumping on the bullish bandwagon, hiking its price target for AMD to $300 from $200.
The firm pointed to AMD’s long-term AI partnerships and the potential for massive earnings growth over the next few years.
Jefferies is equally upbeat as the firm upgraded AMD from Hold to Buy, calling the company’s AI chip business a “multi-generational opportunity.”
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