Advanced Micro Devices

AMD

Market cap $387B

Advanced Micro Devices, Inc. shares have run up following deals with OpenAI and Oracle. The company is finally overcoming fears of AI market saturation. Despite the price increase, I think AMD stock offers an attractive long-term value proposition.

Shares of Advanced Micro Devices (AMD 9.36%) jumped on Wednesday, finishing the day up 9.4%. The spike came as the S&P 500 and the Nasdaq Composite gained 0.4% and 0.6%, respectively.

Major U.S. equities indexes climbed Wednesday afternoon in the wake of strong bank earnings and indications of more Federal Reserve rate cuts ahead. The S&P 500, Nasdaq, and Dow were all higher.

Analysts are cheering the increased revenue visibility that comes from AMD's newly announced deals and that shifts the paradigm for what can be expected starting in 2027.

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.

Chip stocks are hot.

Wedbush analysts believe Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) has provided future certainty around graphics processing unit (GPU) demand following newly announced agreements that promise to substantially lift the company's future GPU revenues.  In a note to clients on Wednesday, the analysts raised their target price on AMD to $270 per share from $190, while reiterating their ‘Outperform' rating on the stock, based on the company's likely revenue path over the next few years.

The technology sector continues to show strength, driven by accelerating AI adoption, capital inflows, and renewed investor confidence. Several stocks are emerging with bullish chart patterns and active catalysts, pointing to the potential for triple-digit gains in the near term.

Advanced Micro Devices (AMD) surged as AI chip contender via cost-effective accelerators like MI300X. Nvidia leads, but AMD is gaining with open-source tools and hyperscaler ties.

Dow rallies on earnings, Nasdaq rebounds as Nvidia and AMD gain. JPMorgan sees trade tensions easing, boosting US stock market forecast.